Yahoo Reports Impressive First-Quarter Profits
Yahoo’s first-quarter earnings report is out, and it looks like the company got off to a decent start this year. Most of Yahoo’s key financial stats either measured up to or exceeded analysts’ estimates, and the company’s stock hasn’t plummeted in after-hours trading.
To be clear: Yahoo reported $1.13 billion in revenue, while analysts thought it would bring in more like $1.17 billion. And Yahoo’s stock is down 2.50 percent at the moment.
It’s important to remember, though, that Google’s stock pretty much plunged after it beat most forecasts last week (down 4.51 percent at around 5:25 PM), so in that sense, Yahoo’s in good shape.
Also, Yahoo reported net income of $310 million – which is quite a lot compared to the consensus estimate of $118 million – along with earnings per share of $0.22 versus the consensus estimate of $0.09.
It might not be unreasonable, then, that Carol Bartz said in a statement, "We had a good quarter . . . . Thanks to our efforts, our search share has stabilized, and we grew display advertising by 20% year over year. More importantly, guaranteed display grew by 24% as advertisers took advantage of the science, art and scale that only Yahoo! can offer."
Yahoo expects that the second quarter could turn out even better, too, projecting an increase in revenue.