WebProNews

Net income for Yahoo's third quarter of 2007 turned out to be the same 11 cents per diluted share it was during the same quarter in 2006. Analysts had estimated eight cents per share for Yahoo's third quarter. The 11 cents result didn't make them much more confident, as Wall Street has pegged Yahoo for 9 cents per share in the fourth quarter of 2007.

That seems low, considering Yahoo and everyone else will be entering the holiday shopping season, where advertisers generally spend more to attract business. For many companies, the fourth quarter makes their year, and they are reluctant to leave opportunities for sales untouched.

Yahoo announced revenue excluding traffic acquisition costs of $1.283 billion for the third quarter. That was a 14 percent increase over last year's third quarter figure.

Net income for the third quarter of 2007 checked in at $151 million, or 11 cents per diluted share, compared to $159 million or or 11 cents per diluted share for the same period of 2006. Free cash flow of $310 million this third quarter improved 8 percent over last year's third quarter figure of $288 million.

"Over the past three months, we conducted a thorough review of our business and the marketplace," said Yang.

"We've made key strategic decisions to invest in and grow our large communities of users, advertisers, and publishers. We've also made progress in sharpening our focus and improving our execution," he said.