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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.

Yahoo!'s headquarters in California.
Paul Sakuma
Yahoo!'s headquarters in California.

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.

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