Yahoo! Inc and Netflix Inc: What investors can expect ahead of this week's financial results |
|
|
| Economy | |
| Written by Gary Howes | |
| Monday, 23 January 2012 | |
|
Financial News Roundup: Yahoo! Inc, Netflix Inc, record dividends, Tesco restructure and EU rescue fund expansion call.
Yahoo! Inc (NASDAQ:YHOO): Yahoo!'s 4Q results, expected Tuesday on January 24 should be generally in line with expectations according to Youssef H. Squali, an analyst at investment bank Jefferies. Netflix Inc (NASDAQ:NFLX): Jefferies expect 4Q11 revs/EPS to be slightly ahead of Street expectations on higher ARPU accompanied by a positive growth in net new subscribers. "Key to the stock short-term will be the outlook for net adds and profitability in 1Q11 as well as management's commentary on the trend in subscriber churn through Q4 and growth in international markets," says Squali. 2011 saw a record for dividendsBritain’s listed companies paid out record dividends in 2011, despite difficult economic conditions and recent evidence that more firms were struggling. Dividends hit a record £67.8bn, boosted by oil giant BP’s recovery and a number of special pay-outs, according to the latest dividend monitor from Capita Registrars. In the first annual increase since 2008, total gross dividends rose 19.4 per cent for the full year, even though Britain’s main share index lost ground during 2011. And payments soared 26% in the fourth quarter alone, compared with the same period in 2010. Capita said the surge reflected broad-based growth across almost all sectors, but is also flattered by some distorting factors, The Scotsman says. EU rescue fundPolitical leaders in Italy and Spain have called for a massive boost to the EU rescue fund and a blast of monetary stimulus by the European Central Bank (ECB), putting them on a collision course with Germany over the handling of the Eurozone crisis. Italy's premier Mario Monti has told Berlin that the new European Stability Mechanism (ESM) must be doubled to €1tn (£828bn) to restore investor confidence in southern European debt, according to Der Spiegel. The move comes days after Mr Monti warned German Chancellor Angela Merkel that austerity fatigue is growing in the debtor states and there will be a "powerful backlash" unless the creditor powers led by Germany do more to correct North-South imbalances and lower borrowing for the whole Eurozone. In what appears to be a coordinated move by the Latin bloc, Spanish foreign minister José Manuel García-Margallo y Marfil backed the plan for a bigger rescue fund. He called for an EMU debt union and sweeping changes to the structure of the Eurozone, The Telegraph writes. Tesco restructureTesco is poised to walk away from its standalone furnishing stores because of weak sales at the warehouse-style outlets in retail parks. Britain’s biggest grocer, whose share price plunged by 16% two weeks ago after revealing disappointing Christmas trading, is thought to be keen to exit from leases its holds on all 13 of its Home Plus stores. Although small in comparison with Tesco’s principal nationwide chain, the stores have been a thorn in the side of the chief executive Philip Clarke, who is under pressure from investors over the company’s faltering growth. He has promised a change in the company’s expansion strategy, with fewer openings of “battleship-sized” out-of-town superstores, The Times says.
|
|
Digg it! 
del.icio.us 
Newsvine 
Reddit 
Stumble It! 
