Analyst Laura Martin On Yahoo!, Sees Earnings Beat With Marissa Mayer Fighting For Her Job

Speaking to Benzinga, Needham & Company Analyst Laura Martin said that she expects Yahoo! Inc. YHOO to beat Q4 estimates

The Street estimates put revenue at $1.19 billion with EPS of $0.29 but Martin felt that Yahoo would report above consensus and estimated the company's revenue at $1.20 billion with EPS of $0.30.

Martin suggested that what will drive the stock is how CEO Marissa Mayer addresses the company’s Alibaba Group Holding Ltd BABA stake because it is “the bulk of the value for the share price.”

Mayer needs to provide solid answers on how the company is going to capture the value of its Alibaba and Yahoo! Japan holdings, “preferably on a tax-free basis,” which would “be great for the shares,” however, if Mayer does not comment or indicates no action is being taken then “it’s going to be bad for the shares,” says Martin.

The core business is so small in relation to the Alibaba stake that its performance has little impact at this point according to the analyst.

With Starboard Value LP taking an interest in Yahoo’s performance, Mayer is “fighting for her job” and that that Mayer will do everything possible to make the best of the next 12 months, according to Martin.

Kevin Riley and Brianna Valleskey contributed to this report.