Yahoo Soars After Q3 EPS Earnings Beat (YHOO)
Yahoo (NASDAQ: YHOO) is up more than five percent in after hours trading after announcing its third-quarter earnings results.
The company reported a Q3 EPS of $0.34 versus the Street estimate of $0.33.
Despite the beat, earnings per share were down three percent from the year-ago period.
Revenue came in at $1.08 billion versus the Street estimate of $1.09 billion. Sales were down one percent year-over-year.
"I'm very pleased with our execution, especially as we've continued to invest in and strengthen our core business," Yahoo CEO Marissa Mayer said in a company release. "In Q3, we launched new user experiences across many of our digital daily habits -- Yahoo Screen, My Yahoo, Fantasy Sports, and more. Now with more than 800 million monthly users on Yahoo -- up 20 percent over the past 15 months -- we're achieving meaningful increases in user engagement and traffic."
"In Q3, we generated free cash flow of $249 million and returned an additional $1.7 billion to shareholders through buybacks," added Ken Goldman, CFO of Yahoo. "As we exit Q3, we are extremely pleased with the strength of our balance sheet, with nearly $3.2 billion in cash and securities, and we are well positioned with ample liquidity to fund our future investments for growth."
Yahoo has taken a much different path in promoting its brand to everyday consumers. Instead of using a bunch of handsets from new manufacturers in its promo for the newly revised Yahoo Mail, the company employed a couple of key products from Apple (NASDAQ: AAPL). This was an interesting choice for a mail app that is also available on Windows Phone and Android devices.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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