Yahoo Incs. first-quarter results that surpassed analysts’ modest expectations. Yahoo’s earning per share are 11 cents a share compared to Wall street expectation of 9 cents per share.
The Sunnyvale-based company said Tuesday that it earned $542.2 million, or 37 cents per share, more than triple its profit of $142.4 million, or 10 cents per share, at the same time last year.
Most of the first-quarter improvement stemmed from a non-cash gain of $401 million recorded to recognize Yahoo’s stake in the parent company of Alibaba.com, a leading e-commerce site in China that went public last year.
If not for the Alibaba windfall, Yahoo would have earned 11 cents per share — comparable to its profit at the same time last year, on an apples-to-apples basis.
The results were 2 cents above the average earnings estimate on the same basis among analysts surveyed by Thomson Financial.
Revenue climbed 9 percent to $1.82 billion.
After subtracting commissions Yahoo paid its advertising partners, its revenue totaled $1.35 billion — just $30 million ahead of analysts’ average projection.
The performance provided another pointer to the ever-widening gap separating Yahoo from Internet search and advertising leader Google Inc., whose first-quarter profit climbed 30 percent to $1.3 billion on revenue that rose 42 percent to $5.2 billion.
Perhaps even more importantly, Yahoo didn’t raise its revenue outlook for the remainder of year.
Yahoo expects its revenue to increase more dramatically in 2009 and 2010 as the benefits from its expanded Internet advertising network start to kick in. “We feel we are on the verge of fundamentally changing the game,” Sue Decker, Yahoo’s president, said in Tuesday’s conference call.
The confident tone of Yahoo’s management contrasted with a more glum tenor at the end of January when Yang warned economic “headwinds” might complicate the company’s turnaround efforts. The bleak outlook came just two days before Microsoft made its unsolicited takeover offer.
Yahoo ended March with 13,800 employees, down from 14,300 workers at the end of 2007. The company jettisoned more than 1,000 workers during the first quarter, but offset some of the purge by hiring about 600 new employees.
Investors didn’t seem to be impressed as Yahoo shares shed 19 cents in extended trading after dipping a penny to finish the regular session at $28.54.
For in depth stock market tips and views Stockinvest.in
The Sunnyvale-based company said Tuesday that it earned $542.2 million, or 37 cents per share, more than triple its profit of $142.4 million, or 10 cents per share, at the same time last year.
Most of the first-quarter improvement stemmed from a non-cash gain of $401 million recorded to recognize Yahoo’s stake in the parent company of Alibaba.com, a leading e-commerce site in China that went public last year.
If not for the Alibaba windfall, Yahoo would have earned 11 cents per share — comparable to its profit at the same time last year, on an apples-to-apples basis.
The results were 2 cents above the average earnings estimate on the same basis among analysts surveyed by Thomson Financial.
Revenue climbed 9 percent to $1.82 billion.
After subtracting commissions Yahoo paid its advertising partners, its revenue totaled $1.35 billion — just $30 million ahead of analysts’ average projection.
The performance provided another pointer to the ever-widening gap separating Yahoo from Internet search and advertising leader Google Inc., whose first-quarter profit climbed 30 percent to $1.3 billion on revenue that rose 42 percent to $5.2 billion.
Perhaps even more importantly, Yahoo didn’t raise its revenue outlook for the remainder of year.
Yahoo expects its revenue to increase more dramatically in 2009 and 2010 as the benefits from its expanded Internet advertising network start to kick in. “We feel we are on the verge of fundamentally changing the game,” Sue Decker, Yahoo’s president, said in Tuesday’s conference call.
The confident tone of Yahoo’s management contrasted with a more glum tenor at the end of January when Yang warned economic “headwinds” might complicate the company’s turnaround efforts. The bleak outlook came just two days before Microsoft made its unsolicited takeover offer.
Yahoo ended March with 13,800 employees, down from 14,300 workers at the end of 2007. The company jettisoned more than 1,000 workers during the first quarter, but offset some of the purge by hiring about 600 new employees.
Investors didn’t seem to be impressed as Yahoo shares shed 19 cents in extended trading after dipping a penny to finish the regular session at $28.54.
For in depth stock market tips and views Stockinvest.in
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