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Yahoo! Inc. is scheduled to announce earnings report for the first quarter after market close on April 18, 2017.

It seemed that the tech company still recorded an average negative earnings surprise of 37.86% despite having an upbeat estimate during the last four quarters.

However, the stock remained positive and held higher by 28.4% compared with the Zacks Internet – Services industry, which only added 3.8%.

YHOO recorded a much better-than-expected results for the fourth quarter, topping analysts’ consensus estimate on both counts, buoyed by a constant solid performance in mobile and native businesses.   

Looking back on Yahoo Inc.’s earnings report, the company recorded an upbeat result for two straight quarters, adding an optimism for a business revamp, which seemed to be a great timing as the tech giant is on the verge of selling its core assets to Verizon VZ.  

During the data release, the tech giant was forced to make a discount worth billion dollars in the purchase agreement, in which Verizon is to acquire Yahoo’s core Internet business at a discount of $350 million for $4.48 billion.  

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The revised deal came in after Yahoo announced its two major data breaches when the company went public on the original $4.8 billion deal revealed last year.

Earnings Preview

Shares of Yahoo hit an all-time high of $125.03 per share in 2000 and is changing hands near $47 per share. The stock is expected to give a huge move after the earnings release and is likely to climb sharply if the numbers are strong. On the other hand, the stock can easily drop if the numbers disappoint.

Conversely, Yahoo is expected to earn $0.14 per share on $800.14 million in revenue, with analysts’ unofficial view on earnings of $0.14 or the so-called Whisper number.

The chart below illustrates Yahoo! Inc. stock movement before the next earnings release. It is clearly shown here that resistance 47.41 may be tested anytime when the trading volume maximizes before market close.

A rising gap also suggests that the stock is making a huge move. Hence, given a bullish tone, it could therefore signal the stock to further rally given the RSI level of 63.9599, which means that the overbought level has not yet been reached.    

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Conclusion

As expectations for the first quarter were slightly mixed, there has been no changes seen during the past ninety days among several analysts. Thus, we anticipate Yahoo! Inc.’s earnings per share (EPS) to record 14 cents on revenue of $1.23 billion for the first quarter, while the revenue is estimated to climb 13.5 percent.  

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