YHOO traded down big in after-hours

YHOO traded down big in after-hours; overall Q and outlook light. Details from the call…
• YHOO saying Panama having early success in the US…."After we introduced the new ranking algorithm on February 5, we saw expected improvements in the run rate year over year of click-through rates versus how they were tracking in January"
• They say they are well positioned to launch Panama in int'l markets. YHOO has launched Panama to select group of Japanese clients yesterday. Remaining int'l markets will be rolled out in the months ahead, starting w/Korea and Europe later this Q.
• They are expanding EBAY relationship - "we're announcing that we've expanded our relationship with eBay, with the introduction of the Yahoo! PayPal checkout program"
• Advertisement activity among lenders and aggregators across our network remains solid. Says they have limited exposure to subprime issues.
• They end w/$3.1B cash; they say their investments (Yahoo Japan, Ali Baba, etc) worth $3.6B in aggregate, or >$5.75/shr


YHOO - A. Quadrani and B. Peck comment after earnings; results within guidance but missed St's raised expectations; Q2 outlook disappoints and so does the unchanged full year outlook; cutting our ests; cutting our PT from $35 to $34; reit Outperform. We are reducing our 2Q07 revenues and GAAP EPS to $1.253B and $0.11 from $1.295B and $0.13, resp. Our full year revenues and GAAP EPS reduces to $5.256B and $0.50 from $5.345B and $0.54. Our estimate changes reflect our view that branded advertising will continue to face pricing pressure, offset by improved search monetization. YoY growth for all the revenues segments (O&O, Branded Ad, Search and total Marketing Services) decelerated in 1Q07 compared to 4Q06.