May 16, 2016

Summary

Data Overview
52 Week High-Low
20 Day Average Volume
Beta
Market Cap
Dividend / Div Yld
Industry

$44.66 - $26.15
12,653,534
1.50
34.62 B
$0.00 / 0.00%
INTERNET SERVICES

Industry Rank

103 / 265 (Top 39%)

Current Ratio

6.24

Debt/Capital
Net Margin
Price/Book (P/B)

4.20%
-92.75%

Elements of the Zacks Rank

1.23

Price/Cash Flow (P/CF)

-14.89

Earnings Yield

0.49%

Debt/Equity

Yahoo! Inc. is one of the leading providers of web-based services and advertisements.
First-quarter revenue and earnings beat the Zacks Consensus Estimate on the back
of mobile strength and good cost control. There is more good news: there is evidence
that the company may be moving closer toward a sale. Management has also made
some progress on product and acquisition strategies but there appears to be a lot of
work left to be done. It is particularly disappointing to see the deceleration in Mavens
revenue, issues in the search business and Yahoos inability to deal with competition,
such that it was forced to write down a chunk of goodwill and reduce its headcount by
15%.

Agreement

Estimate Revisions (60 days)

100%

0.04

100%

100%

100%

Value Score
P/E (F1)

198.26

P/E (F1) Rel to Industry

197.66

PEG Ratio

9.86

P/S (TTM)

7.17

P/CFO

-14.89

P/CFO Rel to Industry

-39.73

-16.84%

Hist. EPS Growth (Q0/Q-1)

-26.09

Qtr CFO Growth

-128.60

2 Yr CFO Growth

-280.98

Return on Equity (ROE)

0.39%

NI - CFO / Total Assets

-4.88
0.11

Revisions: 4

Revisions: 4

Revisions: 4

Revisions: 4

Up: 0 Down: 4

Up: 0 Down: 4

Up: 0 Down: 4

Up: 0 Down: 4

30
Days

7
Current
Days

60
Days

-33.33%

Q2

Q1

30
Days

7
Current
Days

-14.29%

60
Days

30
Days

7
Current
Days

F1

0%

60
Days

30
Days

7
Current
Days

F2

0%

Upside Zacks Consensus Estimate vs. Most Accurate Estimate

Most Accurate:

0.03 Most Accurate:

0.05 Most Accurate:

0.18 Most Accurate:

Zacks Consensus:

0.02 Zacks Consensus:

0.06 Zacks Consensus:

0.18 Zacks Consensus:

Q1

Momentum Score

1 week Price Cng Rel to Industry

F2 (Next Year)

Magnitude Consensus Estimate Trend (60 days)

60
Days

Proj. EPS Growth (3-5 yrs)

1 week Volume change

F1 (Current Year)

96.80

Growth Score

Asset Turnover

Q2 (Next Qtr)

37.17

P/S (F1)

EV/EDITDA Annual

Q1 (Current Qtr)

50.00%

Q2

-16.67%

F1

0.00%

F2

0.34
0.34

0.00%

-11.37%
-0.92%

(F1) EPS Est 1 week change

0.00%

(F1) EPS Est 4 week change

0.14%

(F1) EPS Est 12 week change

-9.51%

(Q1) EPS Est 1 week change

80.00%

Surprise Reported Earnings History

2016 Zacks Investment Research, All Rights Reserved

Reported: 0.01

Reported: 0.02

Reported: 0.11

Reported: 0.03

Estimate: -0.02

Estimate: 0.05

Estimate: 0.07

Estimate: 0.05

Q End 03/16

Q End 12/15

Q End 09/15

Q End 06/15

Average 4 Qtr
Surprise

10 S. Riverside Plaza Suite 1600 Chicago, IL 60606

The data on the front page and all the charts in the report represent market data as of 05/16/16, while the report's text is as of
05/13/2016

Overview
Founded in 1994, Sunnyvale, California-based Yahoo! Inc. is
engaged in the business of serving advertisements across a
large number of owned and affiliate Internet properties. The
companys business activities are primarily targeted at the key
Internet usage areas of communication, information access, and
creation and sharing, with revenues primarily coming from
display and search ads.
At the end of 2015, Yahoos offerings for users included Search
(Yahoo Search and Yahoo Answers), Communications (mail,
messenger, groups), Digital Magazines (Yahoo.com, My Yahoo,
Yahoo Weather, Yahoo News, Yahoo Sports, Yahoo Finance,
Yahoo Entertainment and Lifestyle), Video (Yahoo Screen,
Yahoo Smart TV), Flickr and Tumblr. Its offerings for advertisers
included search ads, native ads (stream, image, Tumblr
Sponsored posts), audience ads (display, video or mobile ads for
specific audiences), premium ads and video platform ads.
Depending on usage, advertisers can manage their ads using
the Yahoo Ad Manager, Yahoo Ad Manager Plus and Yahoo Ad
Exchange.[10K Due]
Services are provided across 50 countries and regions in English
and also in local languages. The sales effort in the U.S. is split
between field, mid-market, and reseller/small business. Sales
activity in international markets is either carried out by the companys own employees or through partnerships with local agencies.[10K
Due]
In 2015, the company generated around42% of revenue from search, around 42% from display advertisements on its own sites and the
balance from other activities. Both Search and Display revenue grew during the year (up12.2% and 15.0%, respectively from 2014).
Other revenues grew 16.3%. Around 80% of 2015 revenue was generated in the Americas, with 13% coming from the Asia/Pacific and
the balance from the EMEA region. The Americas grew 13.0%, the Asia/Pacific declined 10.7% with the EMEA region declining 8.3%.
The primary competitors are Alphabet, Microsoft and Facebook.

Zacks Equity Research: YHOO

www.zacks.com

Page 2 of 10

Reasons To Buy:
Finally, Yahoos core business sale looks imminent. This core has been varying
Yahoos imminent sale,
over the last few years, with CEO Marissa Mayer hacking and building as deemed fit in
Asian assets,mobile-first
an attempt to turn the company around. What this has resulted in is a sizeable user
focus, strategic
base spread across both desktop and mobile devices and engaged with its Yahoo Mail,
acquisitionsand content
Yahoo Finance, Yahoo Sports, Tumblr and digital magazine properties. Mayers baby
additions are the main
has been what she calls the Mavens business (mobile, video, native and social), which
positives.
is the only segment showing some growth albeit at a decelerating rate. She also talks
about more than three dozen new product experiences across the search,
communications, digital content, Flickr and Tumblr operations.With Microsofts strangle hold on Yahoos search, the possibilities of
getting ahead in this business has been limited, a situation that is very unlikely to improve any time in the foreseeable future. To top
it all, Yahoo was unable to get prior approval for an Alibaba spin-off for tax-free distribution to shareholders because the IRS is in the
process of changing the rules. So investors and analysts are all thinking this a great time to bail out. After all, buyers have much to
gain from Yahoo: its user base (second only to Google), mobile presence and social networking platform are attractive. Additionally,
some of its products may be complementary with theirs and there might also be scope for cost synergies. The right acquirer may be
able to monetize thee assets. Buyers have also been lining up, but media reports indicate that Verizon is the front-runner. The sale
looks more likely as ever now that Yahoos board now has two new members from activist investor Starboard Value and Mayer has
secured the promise of a hefty payment in the event the sale leads to her removal within a year.
Yahoos increased focus on the mobile segment has not gone in vain. Revenues from this platform have grown 35.8% in 2015 on
a net basis (i.e. ex-TAC) although growth rates slowed down notably in the third and fourth quarters. Management mentioned
initiatives in search and said that half the Tumblr users were now connecting on mobile. Moreover, the number of mobile Tumblr
users doubled over the past year with mobile daily active users up 34%.Yahoo also makes mobile apps and monetizes them with
ads through its Gemini platform. Mobile ad prices are lower than desktop however given the smaller screen sizes and the related
challenges of doing ecommerce on them but spending volumes are expected to double by 2018 (according to Yahoo) so it is rightly
focusing on the segment.
Management has taken a focused approach to acquisitions with the intention of adding key talent and capabilities and also
enabling the company to expand in strategic areas. Most were small bolt-on acqui-hires, but Yahoo also added key technologies
through what management calls building-block acquisitions: Aviate to help build contextual mobile search, Xobni and IQ Engines to
study interactions between contacts and images, Rockmelt and Summly to create rich media experiences in digital magazines and
Raydee to build upon its video streaming transcoding technology. But the largest acquisitions (Tumblr, Flurry and Brightroll) that also
comprised the bulk of its total spending on acquisitions in recent years were termed strategic. Tumblr added a very large user base.
Flurry helped create its mobile ad network (it brought technology enabling advertisers to determine which of their mobile apps are
most popular with iPhone and Android users). BrightRollbrought video advertising tools with the broadest reach across the U.S.
Yahoos Asian assets add considerable value to the business corpus. Yahoo was able to sell off half its stake in Alibaba for $7.1
billion and buy back its own shares with the cash it generated (after taxes and consideration paid in preference shares). This is a
huge return on its investment since it paid just $1 billion in 2005 for the entire stake. When Alibaba went for its IPO, Yahoo was
required to sell off another chunk of its stake. Yahoo got a little over $9 billion in proceeds, or $6 billion net of taxes, 50% of which
was for distribution. While the tax authorities havent granted prior permission for a tax-free spin-off of the remaining 15% stake in
Alibaba, it remains a valuable asset. The company also has a roughly 36% stake in Yahoo Japan, while Japans Softbank owns
40%+. On investor demand, it is now looking into strategic alternatives that could lead to the offloading of this stake as well.
Yahoo is a player in the online advertising market, which is one of the most attractive growth markets today. The U.S. online
advertising market has seen some very strong growth in the past few years, despite the recession that impacted the entire economy.
Moreover, the share of online ad spending in total ad spending continues to increase. TV ad spending, while remaining steady, is
likely to lose a few points of share due to the very strong growth in online video streaming. The significant growth opportunity in
Yahoos core market is a big positive and its Brightroll acquisition has the potential to help the company acquire some TV ad
dollars.
Yahoo has been beefing up its content though it will probably need to do much more in this area if it is to keep its users engaged.
The company has agreements with CNBC (in Yahoo Finance), ABC Television Group (Yahoo Finance) and NBC Sports Group
(Yahoo Sports) in addition to Spotify and Clear Channel. While Screen was scrapped because it underperformed, Yahoo may have
another plan for its video offerings.

Reasons To Sell:
Yahoos turnaround doesnt appear to be happening. Mayer had positioned the turnaround
over four pillars: people-product-traffic-revenue, the idea being that people of higher caliber
would create winning products that would drive traffic to Yahoo properties, thereby increasing
its chances of earning higher advertising revenue. The strategy was working in fits and starts as

Zacks Equity Research: YHOO

www.zacks.com

The Display market

dynamics remain a
sore point for Yahoo,
which along with
Page 3 of 10

there were a number of executive changes in the last few years and some of the acquisitions
(like Tumblr and Brightroll) did expand customer reach. But if we look at the performance from
2012 to 2015, revenue is up a mere 0.07%, gross profit dollars are down 13.4% and operating
profit dollars are down 106.6%. Additionally, these numbers wont be comparable on a going
forward basis because management has now decided to exit product lines that arent yielding
desired results and is especially cutting down on many international businesses. Yahoo
generates more revenue in the U.S. than elsewhere, so this will probably take down costs. But
the fact remains that it also shrinks revenue growth opportunities. This could very well spell the
beginning of the end.

increasing
competition, search
market share losses
and rising costs keep
us cautious.

The search business is in all kinds of trouble. While comScores numbers for U.S. desktop searches in December shows that
market shares of the leading companies are holding relatively steady, its clear that Yahoo is seeing the slowest growth in the
number of queries served, indicating customer preference moving away from Yahoo. Its well known that Yahoo has yielded
significant share to Microsoft as a result of its search deal. But thats not the only reason for the softness. Yahoos inability to
position itself as the default search engine on mobile devices played a very big part. When Mayer joined the company, the market
was dominated by Google through its deal with Apple (high-end device) and its own Android OS (free). Microsoft Windows was not
getting anywhere. But while Microsoft rethought and proceeded to work itself around this, Yahoo, which doesnt make its own OS or
hardware, was put in a spot. Yahoos only hope in a sense was to get closer with device makers, which was difficult without an OS
to offer. Mayers in app advertising network, which followed the Flurry acquisition (selling search, video and native ads within apps)
helped offset the negative impact, but whether this can be a winning strategy isnt clear since management announced on the last
conference call that the mobile search business in particular was maturing. Mobile search numbers from netmarketshare.com show
that Yahoo has slipped to the number four position in search behind Google, Baidu and Microsoft.
Marissa Mayers focus areas constituting the Mavens (mobile, video, native, social) business is set to slow down significantly
in 2016. Management has already given a cautionary statement about search, but that doesnt mean that weakness in other areas
isnt in the offing. We note that the total number of users and total number of mobile users have been at over a billion and over 600
million, respectively for quite a few quarters so there are probably a few cracks in this strategy that management will talk about later.
In the fourth quarter earnings call, management did say that restructuring actions can affect this business as well, a hint that there is
more bad news to come. Even if Yahoo tries to sell this business, the stagnating or declining user base may not fetch a good
price.Yahoo wrote down goodwill by more than $4 billion. A company would only do such a significant write-down if it finds that it has
significantly overpaid foracquisitions. Since $1.2 billion of this was for acquisitions after 2012, one cant help but wonder if the two
biggest acquisitions Tumblr (social) andBrightroll (video) or either one are underperforming versus expectations.
The Alibaba spin-off isnt happening. Companies have for long avoided taxes by spinning off companies in a tax-free distribution
of assets. In the past, the IRS has approved such deals, but things changed last year. The IRS announced that it would scrutinize
such deals going forward and crack down on companies using the technique simply with a view to avoid taxes. It was initially
thought that Yahoo would not be affected because it had made its application before the IRS announcement. But as luck would have
it, Yahoo failed to obtain prior approval in the customary process increasing fears that the IRS wouldnt confer it the tax benefit.
Without the tax benefit, the deal wont make any sense so management is pursuing a reverse spin off plan under which the Yahoo
business would be spun off instead.
Yahoo survives on advertising revenue and hasnt created assets that can help it diversify away from this highly competitive
market. In the search business, it has an uphill battle with Google and a resurgent Microsoft. In display it is pitted against Facebook,
Twitter and a host of other companies in addition to Google. Further, as more companies start developing online platforms to do
business, the available digital ad dollars continue to get spit. If advertisers are to transfer offline ad dollars (from TV in particular
since a lot of the newspapers have already moved online), they need a compelling platform, which Yahoo doesnt really have.In
contrast Google through YouTube and Facebook have large, growing and engaged user bases, which is far more attractive for
advertisers. Yahoo will see increased competition within the existing market from existing and new players on the one hand, and
limited scope to capitalize on market expansion opportunities because it doesnt have a strong platform right now.
We continue to believe that Mayer did get it right in making Mavens the focus area, but we also think that the company failed to
create a point of leverage. For example, Google created Android first, so it could be leveraged to build its brand and reach mobile
users. Microsofts search business was rudimentary for as long as the company tried to offer it alone, but as soon as it was
integrated with Windows 10, there was a notable positive impact on performance. Yahoo needs a similar point of leverage but as far
as we can make out, it hasnt developedanything of the kind. While both product development and marketing costs dropped in
2015, we dont see how the company can move ahead without investing significantly in these areas. This could be why
management is trimming product lines and closing offices, so they can adjust the costs in growth areas (the company recently
announced a workforce reduction of 15%).

Last Earnings Report

Yahoo 1Q Earnings Beat, Management Doubles Down On Sale

Quarter Ending 03/2016

Report Date

Zacks Equity Research: YHOO

www.zacks.com

Apr 19, 2016

Page 4 of 10

Yahoos (YHOO) first-quarter adjusted numbers managed to edge past estimates with
share prices up 1.05% in response.

Sales Surprise
EPS Surprise

CEO Mayer further defined the focus areas for the company: Search, Mail and Tumblr,
and four core verticals (news, sports, finance and lifestyles), in our priority markets (the
U.S., Canada, the U.K., Germany, Hong Kong and Taiwan). And for our advertisers, we're
committed to our two key offerings, Gemini and BrightRoll

1.57%
150.00%

Quarterly EPS

0.01

Annual EPS (TTM)

0.17

To get all this done, she has to take down employee count. So last quarter saw a decline of 1,200 (headcount is down roughly 22%
since last year and 42% since 2012).
Yahoos user base is phenomenal; it is one of the largest in the world. But the problem that remains and continues to irk investors is
the inability to convert this asset to yield more revenue. This is a function of higher engagement and better targeting of ads. So it was
good to note that total page use in the U.S. grew 14% from last quarter and 10% more per user on the Yahoo app (the new Yahoo app
launched last quarter may have had something to do with it).
There was also some progress on Tumblr: mobile active users are up 12% sequentially and 35% year over year. The company has
redesigned the dashboard, which has resulted in increased engagement on the platform. For advertisers it launched blogless ads and
community targeting, both of which should help monetization.
That said, Mavens revenue remains disappointing, although not more than it has been recently, so the company may be able to bring in
the $1.8 billion its targeting. The business grew 60.2%, 43.1%, 25.9% and 7.4% year over year in the last four quarters and generated
$1.66 billion in 2015.
Mobile was a point of strength in the last quarter, growing double-digits from both the previous and year-ago quarters.
Yahoo continues to focus on search pricing, which could be part of the reason for the sharp decline in paid clicks. Mayer promises that
RPS continues to increase.
Mayer promised that the management team was taking the sale plans very seriously and focused on operating results for the rest of the
call.
The numbers in detailRevenue
Yahoo reported GAAP revenue of $1.09 billion, which was down 14.6% sequentially and 11.3% year over year. Traffic acquisition cost
(TAC) was down 15.6% sequentially and up 24.4% from last year. Excluding these costs in all periods, net revenue was down 14.4%
sequentially and 17.6% year over year, exceeding the Zacks Consensus Estimate by 1.6%.
Yahoo combines revenue from O&O and affiliate sites and presents under Search and Display categories.
Searchrevenue (ex-TAC) was down 8.8% sequentially and 19.4% year over year. Key metrics were a huge disappointment in the last
quarter, with paid clicks dropping 21% year over year. Management said that both the Microsoft and Alphabet relationships helped in
the last quarter and that revenue per search (RPS) has grown 3X over the past three years. The price per click (PPC) grew 7%.
Display revenues (ex-TAC) dropped 19.4% sequentially and were flattish compared to the comparable quarter of 2015. The number of
ads sold grew 8% from the year-ago quarter with the price per ad (PPA) dropping 6%.
Mobile growth is extremely important because of the increasing use of mobile devices to connect to the Internet. Management recently
started breaking out traffic-driven mobile revenue, which came to $391 million in the last quarter, of which Yahoo paid out $131 million
to its revenue sharing partners. Net mobile revenue grew 64.6% sequentially and 11.1% year over year.
Mavens (mobile, video, native, social) dropped 17.4% sequentially although it was still up 7.4% from year-ago levels. Year-over-year
revenue growth continues to decelerate, although the revenue share has grown from 30% to 36% during this time.
Other (fees, listings and leads) revenues were down 12.6% sequentially and 42.7% from last year.
Display, Search and Other platforms represented 44%, 40% and 15% of Yahoos first-quarter ex-TAC revenue, respectively. All the
segments performed below normal seasonality.
By geography: Yahoo generated around 76% of revenue on an ex-TAC basis from the Americas (down 15.1% sequentially and 19.7%
from March 2015), around 7% came from the EMEA region (down 16.6% sequentially and 7.2% year over year) and the balance from
the Asia/Pacific (down 9.1% sequentially and 11.0% year over year).

Zacks Equity Research: YHOO

www.zacks.com

Page 5 of 10

Margins
Yahoo generated a gross margin of 53.1% in the last quarter, down 84 bps sequentially and 874 bps year over year.
Total operating expenses of $688.3 million were down 5.6% sequentially and 13.5% from the year-ago quarter. All costs increased
sequentially as a percentage of sales but were flat to down from last year.
The net result was an operating margin of -10.3% that was worse than the previous quarters -3.4% and the year-ago quarters 3.1%.
Net Income
Yahoos pro forma net loss was $18.4 million or 1.7% of sales compared to loss of $38.2 million or 3.0% of sales in the previous
quarter and profit of $71.4 million or 5.8% of sales in the year-ago quarter. Our pro forma estimate excludes restructuring and other
charges on a tax-adjusted basis in the last quarter.
Including the special items and the amount given out to non-controlling interests, Yahoos GAAP net loss was $99.2 million ($0.10 per
share) compared to loss of $4.43 billion ($4.70 per share) in the Dec 2015 quarter and net income of $21.2 million ($0.02 per share) in
the March quarter of last year.
Balance Sheet
Yahoos cash and short term investments balance was to $5.98 billion at quarter-end, up $119.6 million during the quarter. The
company generated $365.8 million of cash from operations of which $76.4 million was spent for capex.
Guidance
Yahoo provided limited guidance for the second quarter of 2016. Accordingly, revenue is expected to be down in line with normal
seasonality to $1.05-1.09 billion, TAC $240 million, revenue on an ex-TAC basis $810-850 million, adjusted EBITDA of $135-155 million
and non GAAP operating income of -5 million to 15 million.
2016 estimates werent revised at this time.

Recent News
On Mar 24, 2016, Yahoo stated that its Nominating and Governance Committee will review Starboard Value LPs proposed director
nominees and respond accordingly.
On Mar 10, 2016, Internet giant Yahoo! Inc. has entered in to a deal with National Hockey League (NHL) to live-stream broadcasts in
USA. Under this pact, Yahoo will live stream four NHL games weekly. Financial terms are still undisclosed.
Also, Yahoo will continue as NHLs official fantasy sports partner and provide Best of the Week and Best of the Day top plays and
post game highlights. It will sell video advertising inventory for commercial breaks in the NHL games.
Also on Mar 10, 2016, Yahoo appointed two new directors to its board just before a crucial meeting with activist investor Starboard
Value. The two positions have been vacant since last year when Max Levchin and Charles Schwab resigned from their positions.
Levchin and Schwab are being replaced with Catherine Friedman and Eric Brandt.
On Jan 21, 2016, Yahoo announced a new video series called Cities Rising: Re-building America, sponsored by H&R Block and
hosted by Katie Couric. Relationships like this one with H&R Block helps Yahoo to market its huge user base or the sections of it that
are interested in news and current affairs. This series focuses on an in-depth look at urban renewal, positive changes and growth in
cities across America.
On Jan 14, 2016 Yahoo announced the release of its 13.5TB anonymized data for machine learning purposes by the academic
community.The data has been sourced from several Yahoo properties, including the Yahoo homepage, Yahoo News, Yahoo Sports,
Yahoo Finance, Yahoo Movies and Yahoo Real Estate.

Zacks Equity Research: YHOO

www.zacks.com

Page 6 of 10

Industry Analysis Zacks Industry Rank: 103 / 265 (Top 39%)

Top Peers
AKAMAI TECH (AKAM)
ASPEN GROUP INC (ASPU)
AUTOHOME INC (ATHM)
BLUCORA INC (BCOR)
BLUE CALYPSO (BCYP)
BAIDU INC (BIDU)
BRIDGELINE DGTL (BLIN)
EFACTOR GRP CP (EFCT)
ETSY INC (ETSY)

Industry Comparison Internet Services | Position in Industry: 7 of 36

YHOO

X Industry

S&P 500

35.14 B

42.86 M

18.25 B

8.98 B

26

14

22

0.00%

0.00%

1.74%

VGM Score
Market Cap
# of Analysts
Dividend Yield

Industry Peers

Value Score

AKAM

ASPU

ATHM
-

21.85 M

2.88 B

0.00%

0.00%

0.00%

Cash/Price

11.34

-7.45

4.05

-2.87

19.72

-27.01

EV/EBITDA

96.80

6.29

11.27

10.91

-7.16

10.50

PEG Ratio

37.17

0.90

1.80

1.50

NA

0.91

Price/Book (P/B)

1.23

2.38

2.90

2.90

NA

3.85

Price/Cash Flow (P/CF)

-14.89

7.03

12.14

12.84

-9.84

17.34

P/E (F1)

198.26

3.92

18.16

23.32

NA

16.64

9.86

1.96

2.20

3.75

1.73

2.62

Price/Sales (P/S)
Earnings Yield

0.49%

-0.10%

5.41%

4.23%

NA%

5.85%

Debt/Equity

0.04

0.04

0.68

0.20

2.52

0.00

Cash Flow ($/share)

5.56

0.24

5.33

3.79

-0.03

1.43

Growth Score
Hist. EPS Growth (3-5 yrs)

-16.84%

12.90%

8.06%

11.03%

100.00%

18.25%

Proj. EPS Growth (F1/F0)

53.33%

13.92%

6.79%

9.34%

NA

12.88%

172.81%

8.32%

3.67%

11.08%

-32.86%

27.24%

25.50%

10.98%

8.05%

14.89%

NA

NA

6.24

2.20

1.38

3.99

NA

2.66

4.20%

8.91%

41.37%

16.68%

NA

0.00%

-92.75%

-5.49%

9.37%

14.23%

NA

28.64%

0.39%

0.39%

16.33%

11.29%

-174.67%

19.93%

0.11

0.54

0.55

0.54

1.43

0.47

-14.16%

4.38%

2.56%

7.50%

NA

95.61%

Curr. Cash Flow Growth

Hist. Cash Flow Growth (3-5 yrs)
Current Ratio
Debt/Capital
Net Margin
Return on Equity
Sales/Assets
Proj. Sales Growth (F1/F0)
Momentum Score

Daily Price Chg

-0.91%

0.00%

0.05%

0.79%

6.25%

-2.90%

1 Week Price Chg

-0.92%

1.31%

-0.00%

2.19%

9.80%

-10.90%

4 Week Price Chg

-0.38%

-1.40%

0.00%

-1.06%

6.25%

-15.48%

12 Week Price Chg

25.87%

3.12%

8.94%

-4.05%

21.43%

4.68%

52 Week Price Chg

-17.62%

-29.89%

-4.27%

-34.76%

-15.00%

-49.63%

12,653,534

317,386

2,321,832

940,721

(F1) EPS Est 1 week change

0.00%

0.00%

0.13%

0.00%

NA

0.00%

(F1) EPS Est 4 week change

0.14%

0.00%

0.08%

-0.88%

NA

0.00%

(F1) EPS Est 12 week change

-9.51%

-4.19%

0.84%

-1.44%

NA

-0.33%

-12.73%

0.00%

-0.38%

-2.72%

NA

NA

20 Day Average Volume

(Q1) EPS Est Mthly Chg

Zacks Equity Research: YHOO

www.zacks.com

Page 7 of 10

Zacks Equity Research: YHOO

www.zacks.com

Page 8 of 10

Zacks Rank Education

The Zacks Rank is calculated from four primary inputs: Agreement, Magnitude, Upside and Surprise.

Agreement
This is the extent which brokerage analysts are revising their earnings estimates in the same
direction. The greater the percentage of estimates being revised higher, the better the score for this
component.
For example, if there were 10 estimate revisions over the last 60 days, with 8 of those revisions up,
and the other 2 down, then the agreement factor would be 80% positive. If, however, 8 were to the
downside with only 2 of them up, then the agreement factor would be 80% negative. The higher the
percentage of agreement the better.

Magnitude
This is a measure based on the size of the recent change in the current consensus estimates. The
Zacks Rank looks at the magnitude of these changes over the last 60 days.
In the chart to the right, the display shows the consensus estimate from 60-days ago, 30-days ago,
7-days ago, and the most current estimate The difference between the current estimate and the
estimate from 60-days ago is displayed as a percentage. A larger positive percentage increase will
score better on this component.

Upside
This is the difference between the most accurate estimate, as calculated by Zacks, and the
consensus estimate. For example, a stock with a consensus estimate of $1.00, and a most
accurate estimate of $1.05 will have an upside factor of 5%.
This is not an indication of how much a stock will go up or down. Instead, it's a measure of the
difference between these two estimates. This is particularly useful near earnings season as a
positive upside percentage can be used to help predict a future surprise.

Surprise
The Zacks Rank also factors in the last few quarters of earnings surprises. Companies that have
positively surprised in the recent past have a tendency of positively surprising again in the future (or
missing if they recently missed).
A stock with a recent track record of positive surprises will score better on this factor than a stock
with a history of negative surprises. These stocks will have a greater likelihood of positively
surprising again.

Zacks Style Score Education

The Zacks Style Score is as a complementary indicator to the Zacks Rank, giving investors a way to focus
on the best Zacks Rank stocks that best fit their own stock picking preferences.
Academic research has proven that stocks with the best Growth, Value, and Momentum characteristics outperform the market. The
Zacks Style Scores rate stocks on each of these individual styles and assigns a rating of A, B, C, D and F. An A, is better than a B; a B
is better than a C; and so on.
As an investor, you want to buy stocks with the highest probability of success. That means buying stocks with a Zacks Rank #1 or #2,
Strong Buy or Buy, which also has a Style Score of an A or a B.

Zacks Equity Research: YHOO

www.zacks.com

Page 9 of 10

Disclosures
The analysts contributing to this report do not hold any shares of this stock. The EPS and revenue forecasts are the Zacks
Consensus estimates. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the
analysts' personal views as to the subject securities and issuers. Zacks certifies that no part of the analysts compensation was, is, or
will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional
information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we
believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. Because of individual objectives, the
report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed
herein are subject to change. This report is not to be construed as an offer or the solicitation of an offer to buy or sell the securities
herein mentioned. Zacks or its officers, employees or customers may have a position long or short in the securities mentioned and buy
or sell the securities from time to time. Zacks uses the following rating system for the securities it covers which results from a
proprietary quantitative model using trends in earnings estimate revisions. This model is proven most effective for judging the timeliness
of a stock over the next 1 to 3 months. The model assigns each stock a rank from 1 through 5. Zacks Rank 1 = Strong Buy. Zacks Rank
2 = Buy. Zacks Rank 3 = Hold. Zacks Rank 4 = Sell. Zacks Rank 5 = Strong Sell. We also provide a Zacks Industry Rank for each
company which provides an idea of the near-term attractiveness of a company s industry group. We have 264 industry groups in total.
Thus, the Zacks Industry Rank is a number between 1 and 264. In terms of investment attractiveness, the higher the rank the better.
Historically, the top half of the industries has outperformed the general market.

Zacks Equity Research: YHOO

www.zacks.com

Page 10 of 10