RBC Capital: Here’s What To Look For In Yahoo! Heading Into Earnings

RBC Capital analyst Mark Mahaney weighed in today with a few insights on Yahoo! (NASDAQ:YHOO), as the company will report Q4 and FY14 results on Tuesday, January 27th, after market close. The analyst rates the stock a Perform with a $46 price target, which represents a 6% downside from where the stock is currently trading.

Mahaney noted, “For Q4:14, we are expecting net revenue (ex-TAC) of $1.18B, generally inline with Consensus of $1.19B. We are estimating EBITDA of $358MM and non-GAAP EPS of $0.29 vs. the Street at $369MM/$0.29. RBC and Street revenue and EBITDA estimates are within the company’s Q4 guidance and imply a 2% Y/Y decline in net revenue and a 25% Y/Y decline in EBITDA.”

Bottom line, “Based on intra-quarter data points, channel checks, and our model sensitivity work, we view Street estimates as reasonable for Q4, with a modest likelihood of upside variance on the bottom-line. Street Revenue and EBITDA estimates for Q1:15 also seem reasonable, as does the consensus outlook for 1% EBITDA growth in 2015.”

Yahoo! Inc. operates as a technology company worldwide. The company offers Yahoo Search that serves as a starting point to navigate the Internet and discover information; and Yahoo Answers, which enables users to seek, discover, and share knowledge and opinions across mobile phones, tablets, and desktop.