What to Focus on When Yahoo! (YHOO) Reports Q2 Results
NEW YORK (TheStreet) -- Shares of Yahoo! (YHOO) are lower by 0.21% to $37.88 early Friday afternoon ahead of the company's 2016 second quarter results due out after Monday's closing bell.
Wall Street is expecting the Sunnyvale, CA-based Internet giant to post earnings of 10 cents per share on revenue of $1.08 billion.
Last year, Yahoo! earned 16 cents per share on revenue of $1.24 billion.
JMP Securities maintained its "market perform" rating on the stock ahead of the results.
"We expect 2Q16 earnings to be relatively in line with our/ consensus expectations, although we will be most focused on any updates regarding Yahoo!'s strategic alternatives as we believe a decision is likely to be made soon," the firm wrote in an analyst note earlier today.
For the second quarter, JMP Securities will also look at search revenue, paid click growth, progress with Yahoo's Gemini ad platform, display revenue, whether video monetization stabilized, native momentum and Mavens revenue.
"Overall, given the amount of organizational change at Yahoo!, the risks associated, and uncertainty around the strategic review process, we continue to believe the risk/reward in shares is balanced at current levels," the firm added.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins.
But the team also finds weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: YHOO