Post by The Big Daddy C-Master on Jul 25, 2016 6:56:19 GMT -5
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Verizon Communications Inc. (VZ) has agreed to buy Yahoo! Inc. (YHOO) for $4.8 billion. The company will report second quarter 2016 earnings results before the opening bell Tuesday. This will be the main story on the conference call Tuesday with analysts.
Verizon, which last year completed its deal for AOL, has invested heavily in its video capabilities and digital advertising. The company recently hired Ivana Kirkbride, a YouTube veteran, as the “Chief Content Officer” for its Go90 streaming service. The management believes Yahoo!'s assets are the next pieces of the puzzle to help capture a portion of the billions in ad dollars that are now going to Facebook, Inc. (FB) and Alphabet, Inc.'s (GOOGL) Google, which control more than two-thirds of the mobile ad market combined. (See also: Verizon Lead Bidder In Yahoo Deal.)
It is believed that Verizon's purchase, which includes Yahoo's real estate assets, marks the end of Yahoo CEO Marissa Mayer's four-year leadership, which is likely to be logged as a failure.
For the quarter ending July, the company is expected to earn 92 cents per share on revenue of $30.95 billion, according to analysts polled by Thomson Reuters. For the full year, ending January, earnings are projected to fall 2.7% year-over-year to $3.88 per share, while revenue of $127.49 billion would mark a 3.1% decline from the year-ago quarter.
The projected revenue and earnings declines are a function of a two-month labor strike, which was finally resolved in May. Network technicians and customer service representatives walked off the job on April 13 after contract talks hit an impasse over, pensions, healthcare coverage, among other things. In May CEO Lowell McAdam warned investors that the strike would negatively impact results for the just-ended quarter. To what degree will be learned on Tuesday. (See also: Verizon Stock Rises on Strike Agreement.)
Verizon shares closed Friday at $56.10, up 0.73%. The shares have risen 21% year-to-date and 18% over the past year, in comparison to the S&P 500 (SPX) index, which has risen 6% and 3%, respectively, during that span.
Verizon Communications Inc. (VZ) has agreed to buy Yahoo! Inc. (YHOO) for $4.8 billion. The company will report second quarter 2016 earnings results before the opening bell Tuesday. This will be the main story on the conference call Tuesday with analysts.
Verizon, which last year completed its deal for AOL, has invested heavily in its video capabilities and digital advertising. The company recently hired Ivana Kirkbride, a YouTube veteran, as the “Chief Content Officer” for its Go90 streaming service. The management believes Yahoo!'s assets are the next pieces of the puzzle to help capture a portion of the billions in ad dollars that are now going to Facebook, Inc. (FB) and Alphabet, Inc.'s (GOOGL) Google, which control more than two-thirds of the mobile ad market combined. (See also: Verizon Lead Bidder In Yahoo Deal.)
It is believed that Verizon's purchase, which includes Yahoo's real estate assets, marks the end of Yahoo CEO Marissa Mayer's four-year leadership, which is likely to be logged as a failure.
For the quarter ending July, the company is expected to earn 92 cents per share on revenue of $30.95 billion, according to analysts polled by Thomson Reuters. For the full year, ending January, earnings are projected to fall 2.7% year-over-year to $3.88 per share, while revenue of $127.49 billion would mark a 3.1% decline from the year-ago quarter.
The projected revenue and earnings declines are a function of a two-month labor strike, which was finally resolved in May. Network technicians and customer service representatives walked off the job on April 13 after contract talks hit an impasse over, pensions, healthcare coverage, among other things. In May CEO Lowell McAdam warned investors that the strike would negatively impact results for the just-ended quarter. To what degree will be learned on Tuesday. (See also: Verizon Stock Rises on Strike Agreement.)
Verizon shares closed Friday at $56.10, up 0.73%. The shares have risen 21% year-to-date and 18% over the past year, in comparison to the S&P 500 (SPX) index, which has risen 6% and 3%, respectively, during that span.
