Yahoo reported earnings that exceeded Wall Street expectations, while sales met forecasts. But shares took a sharp turn lower in extended-hours trading following the company's first-quarter outlook.
Yahoo posted earnings of 46 cents a share, excluding one-time items, topping estimates for 38 cents a share. The company posted revenue of $1.20 billion, ex-tac, meeting forecasts.
Meanwhile, Yahoo said it expects current-quarter non-GAAP net income of between $130 million and $170 million, well below forecasts. In addition, the company sees current-quarter sales of between $1.06 billion $1.1 billion ex-tac, versus expectations for $1.08 billion.
"Normally you get better pricing in Q4," said BGC Partners analyst Colin Gillis. "The core business is shrinking."
Shares were down nearly 5 percent in extended-hours trading after climbing more than 4 percent during the regular session Tuesday. What is Yahoo stock doing now? (Click here to get the latest quotes.)
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