Analyst Derek Brown says he's concerned about the performance of three key businesses: 1) Internet access, 2) HotJobs, 3) advertising. Brown says: 1) DSL offering from SBC/Yahoo! is slow-to-market; 2) HotJobs likely is struggling in line with the economy; 3) he sees no sign of a meaningful uptick in the market for online advertising. Brown thinks these reasons virtually eliminate any potential for upside in the third quarter, and perhaps also the fourth quarter, suggesting that Yahoo! may report results toward the lower end of guidance.
Brown keeps his sell rating. He maintains his $0.04 third-quarter earnings per share estimate, and cut the $0.06 fourth-quarter estimate to $0.05. He also cut the $0.14 2002 estimate to $0.13, and trimmed the $0.37 2003 estimate to $0.31. Brown has an $8 target.
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