Yahoo Stock Falls as Financial Results Disappoint Wall Street
Shares of Yahoo fell 4 percent after the closing bell when the Internet giant posted lackluster financial results in the first quarter and offered guidance that was below the expectations of analysts.
Yahoo earned $390.3 million in the first quarter, an improvement compared with the $286.3 million it posted the same quarter a year ago. Revenue excluding traffic-acquisition costs, the metric analysts usually look at, was nearly flat at $1.07 billion.
Yahoo said it will post net revenue of up to $1.09 billion in the current quarter, just shy of the $1.1 billion that analysts were modeling.
In a list of "business highlights" during the quarter, Yahoo noted it launched a second season of its web series, Burning Love, a spoof on reality dating shows that also aired on cable TV for the first time during the quarter.
"We are moving quickly to roll out beautifully designed, more intuitive experiences for our users," Yahoo CEO Marissa Mayer said. "I'm confident that the improvements we're making to our products will set up the company for long-term growth."
Yahoo shares were down fractionally to $23.79 during the regular session Tuesday and sunk $1 after the closing bell.