Yahoo!'s (NASDAQ:YHOO) Guidance Puts Damper on Quarter

Yahoo! (NASDAQ:YHOO) had a good quarter on their continual slashing of costs, but weak guidance weighs on the company, as little in the way of catalysts in the near future are visible.

Susquehanna noted, "Fundamentals should continue to be overshadowed by Y's investment portfolio. The Asian assets are likely to see a monetization event by late 2011 or early 2012. Y indicated it is evaluating options for its Y Japan stake on the conference call last night, and we see a Taobao event as likely."

They lowered their full year 2011 and full year 2012 EPS estimates on Yahoo from $0.93 and $1.08 to $0.88 and $1.07.

Susquehanna reiterates its "Positive" rating on Yahoo!, which was trading at $15.56, down $0.47, or 2.90 percent, as of 1:25 PM EST. They have a price target on Yahoo! of $20.