Yahoo Shares Slide After Disappointing Outlook
Yahooshares skidded after the company delivered an outlook that fell short of analyst forecasts and a mixed earnings report.
The Internet-services company reported its earnings excluding items rose to 19 cents a share in the second quarter from 15 cents a share in the year-earlier period.
Revenue slipped to $1.07 billion from $ 1.12 billion a year ago, which the company attributed to revenue sharing related to a search agreement with Microsoft .
The company beat expectations for earnings but missed on revenue: Analysts had expected Yahoo! to report earnings of 18 cents a share on revenue of $1.11 billion, according to Thomson Reuters.
This latest quarter's results include charges for the divestiture of HotJobs, broadband deferred revenue amortization and certain fee rate reductions. Net income rose to $237 million, or 18 cents a share, from $213 million, or 15 cents a share a year earlier.
The company said it expects third-quarter revenue of $1.05 to $1.1 billion; analysts had expected revenue of $1.12 billion.
In recent months the company has felt competition from social networking services like Facebook, which are cashing in on advertising. Yahoo! also saw a decline in its shares after Einhorn’s hedge fund firm Greenlight Capital sold its stake in the companylast Friday due to a feud between Alibaba and Yahoo!.
Yahoo shares hit a recent low on July 18 at $14.36 a share. The stock rose 1.2 percent in regular trading Tuesday but slipped after-hours after the report. Click here for the latest after-hour quotes for Yahoo.