Yahoo Earnings Beat Estimates, But Core Problems Remain

Yahoo's profits in the first quarter beat Wall Street estimates, but the company's core advertising business still appears to be heading in the wrong direction

Yahoo reported earnings-per-share of $0.38 on revenue of $1.07 billion for the March quarter, beating the consensus estimate for earnings of $0.24 per share, but coming in below the $1.1 billion in revenue that analysts had expected. The stock declined by as much as 4% in after hours trading following the earnings release.

Search revenue increased by 6% from the same quarter a year ago to $384 million, but that wasn't enough to offset falling advertising revenues. Display revenues were particularly disappointing, declining by 11% year-over-year to $402 million, and price-per-click decreased 7%. Yahoo's $1.1 billion in revenue was down from $1.22 billion in the March quarter of 2012 Read more...