Yahoo Tops Wall Street Estimates Despite Earnings, Sales Declines
Yahoo released its quarterly results after Tuesday's closing bell, surpassing Wall Street forecasts despite lower revenue and earnings. For the three months ended September 30th, the Internet portal posted a profit of $293 million, down 26 percent from the same period a year ago, while sales excluding revenue shared with partners fell 5 percent to $1.07 billion. The company's per share earnings came in at 23 cents.
Both earnings and net revenue were slightly ahead of the expectations of analysts taking part in a recent Thomson Reuters survey, a rare feat for the struggling Internet company that has routinely disappointed over the last few years. The once-mighty Internet search company's display advertising sales, a vital metric for the company's health, were essentially unchanged from a year ago at $449 million for the July-September quarter.
Yahoo fired its CEO, Carol Bartz last month, and named Tim Morse as its interim chief executive while a search for a permanent replacement is conducted. The company has been the subject of numerous takeover rumors in recent weeks, including a report on Tuesday that Alibaba, the Chinese Internet company in which Yahoo actually has a major stake, has $20 billion in reserves with which to buy Yahoo and an interest in doing so.
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