Yahoo Reports Earnings as Sale Decision Nears
The internet company reported earnings on the same day final bids for its sale were due.
Yahoo on Monday released what could be its final earnings report as a final decision about the sale of its core internet assets looms.
The company's second-quarter earnings report coincided with the deadline for the final round of bidding from potential acquirers, and the results were mixed. Yahoo had adjusted earnings of 9 cents per share, down from 16 cents per share during the same period last year. It brought in $1.3 billion in revenue during the quarter, up from $1.2 billion in the second quarter last year.
Wall Street, as polled by Thomson Reuters, was expecting earnings of 10 cents per share on revenue of $1.08 billion.
Contributing to Yahoo's revenue growth was the sale of property in Santa Clara, Calif., worth $246 million.
Mavens, the group that Yahoo breaks out that includes mobile, video, native and social, brought in $504 million in revenue, up from $401 million during the second quarter of last year.
Meanwhile, the company has recorded impairment charges that added up to $482 million as it relates to the value of Tumblr, the blogging service it acquired for $1.1 billion in 2013. It comes after a $230 million write-off during the fourth quarter last year.
Several companies remain in pursuit of Yahoo's core assets. The most vocal of the possible acquirers, Verizon, is reported to have submitted a $3 billion bid last month, while AT&T, TPG and a group led by Quicken Loans founder Dan Gilbert also have been a part of the bidding process. Should Yahoo make a decision soon about the fate of the company, this would be its last earnings report as an independent public company.
Yahoo CEO Marissa Mayer announced during the company's second-quarter earnings call that the company is "deep into the process of evaluating proposals and alternatives and will update our shareholders as soon as it's prudent."
Yahoo shares, which have been trading up in recent months as the sale process heats up, closed up less than 1 percent to $37.95 on Monday. The company's earnings report sent shares down just over 1 percent during after-hours trading on the Nasdaq.