Yahoo’s Q3 Results Beat Estimates (YHOO)
Shares of internet company Yahoo! Inc. (NASDAQ: YHOO) leaped 4.57 percent in aftermarket trading hours on Monday after the company’s quarterly results topped Street’s estimates.
Announcing fiscal third-quarter results after the evening bell ring, Yahoo reported adjusted net profit of 35 cents a share on revenue of $1.09 billion, beating analysts’ consensual forecast of adjusted earnings of 25 cents a share on revenue of $1.08 billion.
After including sale proceeds from Alibaba, fiscal third-quarter profit came at $3.2 billion or $2.64 a share. In the corresponding of last year, Yahoo had reported profit of $298.3 million or 23 cents a share.
Ever since Merissa Mayer took over the reins of the company in July, Yahoo has witnessed some major changes at top management level as the struggling internet company looks to strengthen its traction in the industry through redefining and restructuring its business.
Earlier this month, Yahoo roped in Henrique de Castro, one of Google’s top ad executives, who will serve as chief operating officer from January or much sooner.
Speaking with analysts at a conference call, the Chief Executive said, “This job is tailor-made for me, I came to Yahoo to grow and redefine the company.”
However, Merissa pointed out that Yahoo will have to improve its performance in web destinations search engine, social efforts and mobile in order to generate more revenue from advertisers.
“The mobile wave is a huge wave for us to ride,” she added while addressing analysts.
The other cause of concern is company’s shrinking share in display advertising market. The company has lost significant amount of display advertising market share to Google and Facebook. According to a statics provided by eMarketer, in 2008, Yahoo held 18.4 percent of the total display advertising market but by the end of 2012 the share is likely to fall to 9.3 percent.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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