Monday, November 12, 2012

Stocks In News: Yahoo! Inc. (NASDAQ:YHOO), Zipcar Inc (NASDAQ:ZIP)

Stocks of Yahoo! Inc.(NASDAQ:YHOO) rose by 12 cents or 0.70% to $17.36 in the morning session.
Yahoo! Inc.(NASDAQ:YHOO), which is based in Sunnyvale, California, announced it plans to leave South Korea three weeks ago without estimating the cost. Recently the company revealed that it will cost about $94 million charges for closure of South Korean business.

How Should Investors Trade YHOO Now? Find Out Here

In Thursday’s regulatory filing Yahoo said that most of the charges will be taken in its fourth quarter. All but $7 million will be non-cash charges. Yahoo expects to pay $5 million to cover the severance packages for laying off 200 employees affected by company's exodus from South Korea and another $2 million for closing offices in the country.

Zipcar Inc(NASDAQ:ZIP) shares surge by $0.96 or 15.89% to $7.00 in Friday’s session as the company posted a strong third quarter.

Revenue for the quarter rose by 15% to $78.2 million, a rise by 3% in comparison to analyst expectation of $75.6 million. Further its membership grew by 18% to about 767,500.

For 2012 the company expects net income of as much as $3 million and said that it will not do worse than break-even. Wall Street is forecasting net income of $900,000, or 2 cents per share.

For the third quarter the company posted net income of $4.3 million or 10 cents per share, a rise by 400 % in comparison to last year. The result included a benefit of $1.7 million from zero-emission vehicle tax credits.

Analyst expected a profit of a penny per share on revenue of $75.6 million.

For the fourth quarter the company expects revenue to range between $67 million to $71 million and for the full year it expects revenue of 275 million to $279 million. Analyst expects $274.6 million.

No comments:

Post a Comment

Privacy Policy | Legal Disclaimer