Shares of Yahoo! Inc. edged up 2.6 percent to close at $26.56 Friday, recovering a bit from turbulence sparked by the Internet portal's reporting on its financial outlook for this year. Those reports sparked a flurry among industry analysts to lower their ratings on the company, actions that caused the stock to drop. During its fourth-quarter earnings report on Jan. 10, Yahoo! management sharply reduced its revenue forecast due to weak advertising spending. Yahoo!'s fourth-quarter earnings met analysts' forecasts, but the company said full-year 2001 profits would likely be between 33 cents and 43 cents a share, down from the consensus forecast of 57 cents. The company reported fourth-quarter revenue of $310.9 million, about $5 million short of analysts' forecasts. It also predicted 2001 revenue of $1.2 billion to $1.3 billion for the year, below the more than $1.4 billion to $1.5 billion that analysts had been forecasting.
Copyright January 2001, Crain Communications Inc.