Finally, Yahoo is showing its true numbers. Their option costs are true costs and a reduction in value to shareholders. Ignoring them is the wrong approach.
Any reasonable option valuation is better than the zero valuation used up to now.
Onésimo Alvarez-Moro
See article:
The new requirement for US companies to deduct the cost of employee stock options from their profits led to a 22 per cent fall in reported net income at Yahoo in the first three months of this year, according to figures released on Tuesday.
However, the company’s revenues and adjusted earnings met Wall Street’s forecasts, reflecting a more solid performance than the internet company had shown in its previous quarter, and Yahoo’s shares rose 5 per cent in after-market trading.
“Yahoo is really off to a good start in 2006,” said Terry Semel, chairman and chief executive. While the company does not disclose separately the performance of its search and branded advertising businesses, Mr Semel added: “We achieved balanced growth with contributions across the board,” both by business unit and geographical location.
See full Article.
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