Yahoo Gives Weak Revenue Forecast; Shares Slide
Yahoo reported earnings that topped analysts' expectations, but it gave revenue guidance for the current quarter that was short of Wall Street's forecasts.
The online search and advertising company reported a profit of 24 cents a share, up from 11 cents a share a year earlier.
Revenue for the most recent period, excluding traffic-acquisition costs, came in at $1.21 billion. A year ago, sales were $1.258 billion.
Traffic-acquisition costs (TAC) include money that Web sites pay to advertisers and that they spend to draw traffic. Analysts factor TAC into their earnings estimates.
For the current quarter, Yahoo said it sees sales in the range of $1.02 billion to $1.08 billion. That range falls short of analysts' most recent estimate, which stood at $1.13 billion.
Yahoo shares fell in extended trading Tuesday. Get after-hour quotes for Yahoo here. They closed the regular session at $16.02.
Earlier Tuesday, Yahoo announced that it is laying off another 1 percent of its workforce.