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Earnings Analysis: 
Yahoo Posts a 61% Dip in Profit
Author: 123jump.com Staff
123jump.com
Last Update: 2:24 PM EST January 24 2007


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Yahoo reported a 61% dip in profit depending on advertising for most of their revenue. ConocoPhillips fourth-quarter earnings fell 13% on lower natural gas prices and shrinking gasoline margins. TD Banknorth fourth-quarter profit rose as results were helped by gains from an acquisition. Piper Jaffray fourth-quarter profit climbed 26% from last year, on strong revenue from providing equity and fixed-income financing, as well as advisory services on mergers and acquisitions.

 
Yahoo Inc. (YHOO: chart), Internet services provider, reported a 61% dip in profits on a 13% gain in sales. Yahoo said Tuesday that it earned $268.7 million, or 19 cents per share, during the final three months of 2006, traditionally the peak season for Web sites like Yahoo that depend on advertising for most of their revenue. Yahoo ended 2006 on the upswing, with fourth-quarter revenue of $1.7 billion, a 13 percent increase from $1.5 billion in the prior year.

ConocoPhillips (COP: chart), oil company, said that its fourth-quarter earnings declined to $3.2 billion, or $1.91 per share, compared with a year-ago profit of $3.68 billion, or $2.61 per share. The latest results reflect a reduction of 17 cents per share related to previously disclosed impairments. On a continuing operations basis, the company earned $3.78 billion, or $2.69 per share, in the year-ago period. Revenue decreased to $41.5 billion versus $51.3 billion last year.

TD Banknorth Inc. (BNK: chart), financial services company, said that its fourth-quarter net income increased by 50% to $83.4 million, or 36 cents per share, compared with $55.6 million, or 32 cents per share a year earlier. The company said quarterly total revenue jumped 40% to $424 million. The company said adjusted earnings were $117.8 million, or 51 cents per share for the fourth quarter, compared with $108.1 million, or 62 cents per share in the year-ago period. Net interest income rose 21% to $295.1 million.

Piper Jaffray Cos. (PJC: chart), investment bank, said it earned $20.6 million, or $1.15 per share, in the fourth quarter, up from $16.4 million, or 87 cents per share, in the same period a year ago. Earnings from continuing operations climbed to $1.49 per share, including a 73 cents benefit from a reduction in a litigation reserve. Revenue jumped 24% to $146.6 million from $127.8 million last year.

TCF Financial (TCB: chart), financial services operator, said fourth-quarter net income fell 18% to $53.7 million, or 42 cents per share, from $65.5 million, or 50 cents per share in the year-ago period.

Vertrue Inc. (VTRU: chart), Internet direct marketing services company, said that its second-quarter net earnings increased to $8.7 million, or 74 cents per share, compared with $7.66 million, or 66 cents per share, in the year-ago period. Revenue climbed to $178.6 million versus $160.1 million in the same period a year earlier.

EZCorp Inc. (EZPW: chart), pawnshop operator, said that its first-quarter net earnings increased to $9.76 million, or 23 cents per share, compared with $6.76 million, or 17 cents per share, in the year-ago period. Revenue jumped to $91.7 million from $75.8 million in the first-quarter a year earlier.

Sun Microsystems Inc. (SUNW: chart), computer server and software maker, reported a fiscal second-quarter profit of $126 million, or 3 cents per share versus a net loss of $223 million, or 7 cents per share, in the year-ago period. Revenue climbed 7% to $3.57 billion compared with $3.34 billion a year ago on better sales of server product lines. Sun received a $700 million investment from private equity firm Kohlberg Kravis Roberts.
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