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Terry Semel-Sue Decker-Jerry Yang drama had us all distracted from the fact that Yahoo (YHOO) is going to report yet another bad quarter. The company told Wall Street analysts that the June quarter is going to come in towards the lower half of revenue and EBITDA guidance. Ditto for the second half of 2007.
So nothing really has changed. The trouble this time is coming from display advertising side of the business, one segment Yahoo has been traditionally very strong. This is going to get worse: Google just got into the display advertising game with DoubleClick.
On the upside, Panama is doing better than expected – but that isn’t enough to get Wall Street jumping with joy. Stock is trading down this morning, and has given up some of its post-Semel exit gains.
“Management’s comments regarding bottom half of the guidance range for financial results is a clear negative,” writes Ben Schachter, Internet analyst for UBS Research in a note to his clients. “The bottom line is that we would have liked to see a more radical departure from the past.” Citibank cut its second quarter revenue estimates from $1.244 billion to $1.228 billion and 2007 revenues from $5.125 billion to $5.075 billion.
* Don’t blame Panama, Real Threat Facing Yahoo