Yahoo 1Q Profit Climbs 28% On Slight Revenue Gain

Date : 04/17/2012 @ 4:50PM
Source : Dow Jones News
Stock : Altaba Inc. (MM) (AABA)
Quote : 58.07  0.0 (0.00%) @ 4:00AM

Yahoo 1Q Profit Climbs 28% On Slight Revenue Gain

Altaba, Inc. (NASDAQ:AABA)
Historical Stock Chart

5 Years : From Jul 2012 to Jul 2017

Click Here for more Altaba, Inc. Charts.

Yahoo Inc.'s (YHOO) first-quarter earnings rose a better-than-expected 28% as the online media giant's advertising revenue crept up, driven by improvement in its search business.

Yahoo's once high-flying ad business has been stuck in rut over the past few years as its revenue from display ads declines. Results had also slumped last year in Yahoo's search business, which the company outsourced to Microsoft Corp. (MSFT) through a revenue-sharing agreement.

With Yahoo's past earnings growth coming from cost reductions, investors are looking to new Chief Executive Scott Thompson, who left eBay Inc. (EBAY) unit PayPal to join Yahoo in January, to articulate a plan to return the company to growth.

Thompson outlined the strategy this month, saying he will split Yahoo into three main groups focused on consumer-focused websites, regional ad relationships and technology assets that include data centers and Yahoo's ad platforms.

The new strategy comes after Yahoo confirmed it would cut 2,000 jobs, or 14% of its global work force, in an effort to redeploy its resources more effectively.

In the latest quarter, Yahoo's core display-ad business reported 3.6% lower revenue after traffic-acquisition costs. Search ad revenue increased 7.6% on that basis.

By comparison, rival Google Inc. (GOOG) last week saw its top line jump 24% to $8.14 billion after traffic acquisition costs. The increase led to a higher first-quarter profit as Google's market-dominating search engine continued to see its number of clicks increase, though the amount advertisers paid per click fell.

Yahoo posted a profit of $286.3 million, or 23 cents a share, up from $223 million, or 17 cents a share, a year earlier. Excluding restructuring charges and other adjustments, per-share earnings rose to 24 cents in the latest quarter. Wall Street was expecting a 17-cent profit, according to a poll by Thomson Reuters.

Total revenue edged up 0.6% to $1.22 billion, while revenue excluding traffic-acquisition costs--commissions paid to partners--grew 1.2% to $1.08 billion. The company's January guidance called for revenue between $1.03 billion and $1.11 billion.

Operating margin narrowed to 13.9% from 15.6%.

For the second quarter, Yahoo forecast revenue between $1.03 billion and $1.14 billion excluding commissions paid to marketing partners, bracketing analysts' average estimates for $1.08 billion of revenue.

Shares rose 1.7% to $15.27 after hours. The stock had declined 9.7% over the past year through Tuesday's close.

-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com

Latest AABA Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.