Yahoo Down 5%; Analysts Trim Outlook Following Q2 Miss
Yahoo (NASDAQ: YHOO) was trading down over five percent Wednesday after analysts trimmed their outlooks in light of disappointing second-quarter results.
CRT Capital downgraded Yahoo to Fair Value and cut its price target from $41 to $38 per share.
BMO Capital Markets and JP Morgan each reiterated Market Perform ratings.
JP Morgan cut its 2014 earnings estimate from $1.56 to $1.15, while Macquarie maintained an Outperform rating with a $40 target.
Yahoo late Tuesday posted earnings of $0.37 per share, a penny below expectations. Revenue fell about 4.5 percent from a year earlier.
"We are not satisfied with our Q2 results," Yahoo CEO Marissa Mayer said in a statement.
Yahoo said it reduced the number of shares it must sell in Alibaba's initial public offering from 208 million to 140 million shares. Yahoo will retain an 18 percent stake in Alibaba following the offering.
At least half the proceeds from sale of the 140 million shares will be used in a stock repurchase plan, Yahoo said Wednesday.
Shares recently traded at $33.81, down 5.03 percent.
Latest Ratings for YHOO
|Jul 2016||Cantor Fitzgerald||Maintains||Buy|
|Jul 2016||Credit Suisse||Maintains||Neutral|
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