Yahoo First-Quarter Profits Fall Short of Expectations
Revenue of $1.2 billion narrowly exceeded expectations.
Yahoo said on Tuesday that it earned 15 cents per share in the first quarter, less than analysts had predicted, and shares of the pioneering Internet company were falling 2 percent after the closing bell. Revenue of $1.2 billion narrowly exceeded expectations.
Yahoo was expected to earn 18 cents per share, down from 38 cents in the same quarter last year, on revenue of $1.1 billion, about the same as a year ago.
Yahoo, which is spinning off its $40 billion investment in Alibaba, has been under pressure for years to prove that its core business of Internet search and content can grow, and CEO Marissa Mayer addressed the topic on Tuesday.
"Yahoo is amidst a multi-year transformation to return an iconic company to greatness," she said, adding that Yahoo posted 20-percent growth in search revenue and 2-percent growth in display advertising. Mobile revenue, she said, surged 62 percent.
Among the accomplishments of the quarter that Yahoo highlighted in its earnings report was an expansion of a relationship with Walt Disney, including a new "Yahoo Your Day" segment on Good Morning America.
Shares of Yahoo fell fractionally to $44.49 during the regular session on Tuesday but were off $1 in after-hours trading.