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Yahoo, Inc. (YHOO) reported Q4 EPS of $0.32, $0.04 better than the analyst estimate of $0.28. Revenue excluding traffic acquisition costs was $1.22 billion, compared with $1.17 billion for the year-earlier period. Adjusted profit was 32 cents a share. Analysts polled by FactSet on average were expecting a profit of 27 cents a share, on revenue of $1.21 billion.

Further, Yahoo's fourth-quarter earnings fell 7.9% as the Internet firm recorded one-time charges related to the closure of its Korea business, masking a modest revenue increase from search ads.

GAAP revenue was $1,346 million for the fourth quarter of 2012, a 2% increase from the fourth quarter of 2011. GAAP search revenue was $482 million for the fourth quarter of 2012, a 4% increase compared to $465 million for the fourth quarter of 2011.

CEO Marissa Mayer commented,

I'm proud of Yahoo's 2012 and fourth quarter results. In 2012, Yahoo exhibited revenue growth for the first time in 4 years, with revenue up 2% year-over-year.

Mayer states that during the quarter Yahoo signed key partnerships including those with NBC Sports and CBS Television, and launching terrific mobile experiences for Yahoo Mail and Flickr.

Mayer has said she's aiming to return the company to its roots as a center of content discovery online, promoting its use across mobile devices and enhancing partnerships with other companies. In the latest quarter, revenue from Yahoo's core display-ad business fell 3.5% while total search ad revenue improved 3.8%.

Source: Yahoo Beats Expectations And Pleases Shareholders