Yahoo Beats Estimates, Shares Surge

Oct.16.07 | About: Yahoo! Inc. (YHOO)

Yahoo reported a drop in its third-quarter earnings after the bell Tuesday, as the company continues its major reorganization, but its shares jumped as the much-maligned internet giant beat analyst estimates by a healthy margin. Net profit decreased to $151 million ($0.11/share) from $159 million ($0.11/share) last year. Gross revenue increased 12% to $1.77 billion, and net sales, which exclude revenues passed on to advertising partners, were up 14% to $1.28 billion. Analysts forecasted earnings of $0.08/share and net sales of $1.24 billion. Looking ahead, CEO Jerry Yang said, "We are focused on three big, multi-year objectives: to become the starting point for the most consumers on the Internet: to be the 'must buy' for the most advertisers: and to deliver open, industry-leading platforms that attract the most developers." For the fourth-quarter, Yahoo said revenues will be in a range of $1.31 billion to $1.45 billion; analysts had been predicting $1.38 billion in sales. Yahoo shares were down 4.2% during Tuesday's session; they jumped 8.7% to $29 after the earnings announcement, as investors were reassured the company's reorganization was progressing smoothly.

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