Wall Street is cautiously watching Yahoo for a bleak forecast when it reports earnings after the close of markets Tuesday.
A handful of analysts are bracing for disappointment on Yahoo’s 2008 guidance at a time when the Internet search company continues to fend off Google, Microsoft, and Facebook. The Street will also be looking for more aggressive measures from co-founder and CEO Jerry Yang to reverse the company’s fortunes.
“We do not believe Yahoo will guide aggressively for 2008,” RBC Capital Markets analyst Jordan Rohan wrote in a report.
Yahoo shares lost $0.43, or 2.1 percent, at $20.35 in late trading.
The beleaguered search company is expected to report net income of $154 million, or $0.11 per share, on revenue of $1.4 billion.
RBC Capital Markets analysts said layoffs could save the Internet company $200 million to $400 million in 2008. It is widely expected that the company will lay off hundreds of employees during its earnings call.