Yahoo Profit and Sales Match Estimates; Shares Fall

Yahoo on Tuesday posted second-quarter earnings of $0.11 per share -- in line with estimates -- and flat with earnings per share of of $0.11 in the same period a year ago.

Revenue for the three months ended in June rose 8% to $1.244 billion, compared with $1.123 billion in the second quarter of last year.

Yahoo shares lost roughly 3.77% in after-hours trade.

The results marked the sixth consecutive quarter in which Yahoo's profit has slid from the year-ago period.

Analysts surveyed by Thomson Financial last month had lowered their projections, when Yahoo said that its second-quarter results would likely hit the low end of the guidance the company had provided in April.

On Tuesday, Yahoo also offered a glummer outlook for the third quarter: Excluding ad commissions, the company predicts its revenue for the full year will range between $4.89 billion and $5.19 billion. In April, Yahoo's full-year forecast called for revenue to come in from $4.95 billion to $5.45 billion.

Yahoo shares had gained 83 cents, or 3.10%, to close Tuesday's regular trading session at $27.53. But after the second-quarter results and revised projections were released, the shares lost $1.04, or 3.77%, in after-hours trading.


The results came after a tumultuous period for the Internet portal company, which saw the resignation of Chief Executive Terry Semel and the return of company co-founder Jerry Yang to the top job. Semel remains on as non-executive chairman.

"I am focused on doing everything we need to do to strengthen our business, capture long-term growth opportunities and create increased value for our shareholders," Yang said in a statement.

Certain shareholders had vociferously criticized Semel's leadership, blaming him for, among other things, the loss of DoubleClick to arch-rival Google (a $3.1 billion acquisition), the loss of valuable ad sales ground to News Corp.'s MySpace social networking site, and a tepid Yahoo share price.

Contact U.S. News


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Don't Miss

U.S. Video

  • Senate Armed Services Committee Chairman John McCain tells CNBC he thinks filmmaker Michael Moore's statements about the movie "American Sniper" were "idiotic."

  • Ethan Harris, Co-Head of Global Economics Research, BofA Merrill Lynch Global Research, says the Fed could raise rates in the second half of this year. The Fed must look at inflation and the unemployment rate, he says.

  • Alan Ruskin, Global Head of Group of 10 Foreign Exchange Strategy, Deutsche Bank AG, discusses whether the dollar is actually too strong and whether that could hurt the US economy in the long run.