Yahoo! Beats on Earnings, Verizon Deal to Close in Q2

Yahoo! Inc. YHOO just released its fourth quarter fiscal 2016 financial results, posting earnings, before non-recurring items, of 18 cents per share and revenue of $960 million. Currently, YHOO is a Zacks Rank #3 (Hold), and is up 0.47% to $42.60 per share in after-hours trading shortly after its earnings report was released.

Beat earnings estimates. The company posted earnings of 18 cents per share, surpassing the Zacks Consensus Estimate of 14 cents per share. This number excludes a penny from non-recurring items.

Beat revenue estimates. The company saw gross GAAP revenue figures of $1.469 billion. Taking out commissions paid to partners, revenues came in at $960 million, beating the Zacks Consensus Estimate of $911 million but declining 24.6% year-over-year.

For the quarter, Yahoo brought in mobile revenue of $459 million, desktop revenue of $955 million, and total traffic-driven revenue of $1.414 billion.

Verizon VZ deal update: the sale of Yahoo's core business to the wireless carrier to now expected to close in the second quarter of 2017, given work required to meet closing conditions.

We continued to build our mobile and native businesses -- delivering nearly $1.5 billion in mobile revenue and over $750 million in native revenue -- while operating the company at the lowest cost structure in a decade. With our 2016 and Q4 financial results ahead of plan, and the continued stability in our user engagement trends, the opportunities ahead with Verizon look bright," said Marissa Mayer, CEO of Yahoo.

Here's a graph that looks at Yahoo's price and EPS surprise:

Yahoo! Inc. Price and EPS Surprise

Yahoo! Inc. Price and EPS Surprise | Yahoo! Inc. Quote

Yahoo! Inc. is a global Internet communications, commerce and media company that offers a comprehensive branded network of services. As one of the first online navigational guides to the World Wide Web, Yahoo! is one of the leading guides in terms of traffic, advertising, and household and business user reach. The company also provides online business and enterprise services designed to enhance the productivity and Web presence of Yahoo!'s clients.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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