Wednesday, April 20, 2011

Yahoo (YHOO) Beats Estimates, But Search Still Down

Quarterly earnings for Yahoo! (NASDAQ:YHOO) beat analyst estimates, and were generated by the core business of the company - display advertising.

As to its search partnership with Microsoft (NASDAQ:MSFT), it remains a work in progress and is taking longer to pay off than originally thought for Yahoo.

Yahoo earned $223 million in net income, or 17 cents a share, in the quarter ended March 31 compared with $310 million, or 22 cents a share, in the same quarter last year.

Minus charges connected to investments in Japan, Yahoo earned 19 cents a share, easily topping the 16 cent average of analysts expected.

Executives at Yahoo said the company was continuing to make progress on efforts to expand into the fast-growing mobile Internet market, and to boost the amount of video advertising on the site.

Net revenue, which excludes fees paid to partner websites, was approximately $1.064 billion in the first quarter, just beating the $1.055 billion average of analyst expectations but missing by 6 percent from $1.13 billion a year earlier.

Yahoo! closed down Tuesday at $16.12, dropping $0.22, or 1.38 percent. in after hours trading it climbed to $16.68, gaining $0.56, or 3.47 percent.

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