Yahoo (NASDAQ:YHOO) beat Wall Street’s estimates by a penny for the second quarter but sales fell short of what analysts had projected, sending shares of the company down in after-hours trading. (Statement)
For the quarter, the company said net income was $213.3 million, or 15 cents per share, on sales of $1.13 billion, after traffic acquisition costs (TAC). Analysts had been expecting earnings of 14 cents on revenue of $1.16 billion. In a statement, CEO Carol Bartz said:
We’re pleased that we continued to deliver strong operating income and margin expansion. Our search fundamentals are improving and we posted another quarter of healthy display advertising growth.
Particularly, the company said that display advertising on Yahoo’s owned-and-operated sites "continued to perform well, growing 19 percent from the year-ago quarter."
Looking ahead, the company said it expects sales of $1.57 billion to $1.65 billion for the third quarter.
The company will host a conference call with analysts this afternoon. We’ll update this post with highlights from that call and more details from the quarterly report.
Shares of Yahoo were up slightly in regular trading, closing at $15.20. Shares began falling during after-hours trading when the earnings report was released.