The following is an excerpt from Max Willens | April 18, 2016 | ibtimes.com |
There may be a lot of speculation swirling around Yahoo’s future, but there’s still the matter of its most recent past. The web giant will release its first-quarter 2016 earnings Tuesday, one day past the deadline for Yahoo acquisition bids.
After the financial report, one key question will remain: How much work will Yahoo’s eventual owners have to do to right the ship?
It would take a lot for Yahoo to beat Wall Street’s expectations, and the street is not expecting much. Analysts polled by Thomson Reuters project quartely revenue of $1.08 billion, a 12 percent slip from the same period last year. A slightly larger pool of analysts estimate, on average, earnings per share of 7 cents, down more than 50 percent from the first quarter of 2015.
These dim prospects are the result of Yahoo slowly tacking away from its former core businesses — desktop web search and display advertising — in the hope of becoming a mobile media powerhouse, capable of serving up premium content on mobile and social networks and selling top-quality ads against it.
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