Yahoo reported a profit that declined from last year but matched analysts' expectations. The Internet advertising firm also lowered its revenue outlook and said it will cut 10 percent of its workforce.
Yahoo said it garnered a profit of 9 cents a share in the third quarter, compared with earnings of 11 cents a share this time last year.
Sales for the most recent quarter came in at $1.325 billion, up from $1.283 billion last year. As is customary with Yahoo and a handful of other Internet companies, those revenue figures exclude traffic-acquisition costs.
Yahoo said it experienced weak sales as corporate advertisers slashed spending on online brand promotions.
( Collin Gillis of Canaccord Adams shares his analysis in the video)
Analysts surveyed by Thomson Reuters expected Yahoo to report income of 9 cents per share on $1.37 billion in net revenue.
Yahoo is lowering its revenue estimates for the remainder of the year. The move reflects mounting concerns about a downturn in online ad spending as the economy unravels.
In a revision made Tuesday, the Sunnyvale-based company projected its 2008 revenue will range from $7.18 billion to $7.38 billion—down from a forecast of $7.35 billion to $7.85 billion issued three months ago.