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Tuesday, October 17, 2006

Yahoo! Says Uh-Oh! Again

Yahoo! (YHOO) closed down only 0.1% at $24.15 in regular trading, and that was after Cramer had warned they "would warn" again today with the earnings. It had posted about 50 million shares on the day, double its normal volume.

Its shares traded down almost 3.5% more to $23.30 in after-hours trading as traders prepared for more disappointment.

It posted $0.11 EPS and revenues of $1.12 compared to $0.11/R$1.15B estimates. $1.15-1.27 Billion, but some were as much as $1.3 Billion. It also announced a $3 Billion share buyback plan over the next 5-years.

YHOO posted Total revenues including traffic acquisition costs of $1.580 Billion, a 19% increase compared to $1.330 Billion for the same period of 2005. It had guided ex-TAC (ex-Traffic Acquisition Costs) revenues to $1.12 to $1.23 Billion for this quarter before warning on weak ad sales in September.

We knew Panama, the new search code, was put off already. Cramer will probably say this warning didn't include the kitchen sink being tossed out too, so we'll see if he says they didn't guide low enough.

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