Yahoo Beats Wall Street Earnings Estimates; Stock Down (YHOO)
Online media company Yahoo! (NASDAQ: YHOO) released its quarterly financial results after the closing bell on Tuesday.
The company reported earnings per share that were well ahead of Wall Street estimates, but revenue came in slightly light of expectations. In late trading, the stock was last down around 1 percent to $26.63.
“I'm encouraged by Yahoo!'s performance in the second quarter. Our business saw continued stability, and we launched more products than ever before, introducing a significant new product almost every week,” said Yahoo! CEO Marissa Mayer. “From the new Yahoo! News, the new Yahoo! Sports app, the redesigned Yahoo! search, the new Flickr, the new Yahoo! Mail for tablet, the Yahoo! Weather app, our new Yahoo! app with Summly - this quarter drove tremendous improvements in our product line and our users responded with increased usage and engagement.”
The Sunnyvale, California-based company reported a second-quarter profit of $331 million or $0.30 per share, compared to $226.6 million or $0.18 per share, in last year's corresponding quarter.
Excluding one-time items, Yahoo's earnings were $386 million or $0.35 per share, compared to $362.6 million or $0.30 per share, in last year's corresponding period. This easily topped Wall Street analysts' consensus EPS estimates of $0.30.
Revenue in the quarter, excluding traffic acquisition costs (TAC), was $1.07 billion, slightly lower than the $1.8 billion that Yahoo reported last year. This just missed analysts' consensus revenue estimates of $1.8 billion.
Q3 and Full-Year Guidance
Looking ahead to the third-quarter, Yahoo said that it expects ex-TAC revenue of $1.06 billion to $1.1 billion. This is below current consensus of $1.12 billion.
For the full-year, Yahoo also cut its forecast. The company now sees ex-TAC revenue of $4.45 billion to $4.55 billion compared to its previous range of $4.5 billion to $4.6 billion.
Adjusted operating income is expected to be between $900 million and $1 billion compared to a previous outlook of $1.05 billion to $1.1 billion.
Currently, Wall Street analysts are modeling earnings per share of $1.41 on revenue of $4.53 billion for the full-year.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.