Yahoo Dn 4.5%; In Light Of Q2 Miss, Analysts Trim Outlook

Yahoo! Inc.

was trading down 5 percent Wednesday after analysts trimmed their outlooks in light of disappointing second-quarter results. CRT Capital downgraded Yahoo to Fair Value and cut its target to $38 a share, from $41. BMO Capital Markets and J.P. Morgan each reiterated Market Perform ratings. JP Morgan cut its 2014 earnings estimate to $1.15 from $1.56, while MacQuarie maintained an Outperform with a $40 target. Late Tuesday Yahoo posted earnings of $0.37 a share, a penny below expectations while revenue fell about 4.5 percent from a year earlier. "We are not satisfied with our Q2 results," Yahoo Chief Executive 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. Following the offering Yahoo will retain an 18 percent stake in Alibaba. At leaset half the proceeds from sale of the 140 million shares will be used in a stock repurchase plan, Yahoo said Wednesday.