Yahoo’s Third-Quarter Earnings Beat the Bears
Yahoo! (NASDAQ:YHOO) closed Tuesday’s regular session down 1.82 percent at $33.38 per share but edged higher in post-market trading after reporting third-quarter that generally exceeded expectations. Adjusted revenue fell 1 percent on the year to $1.081 billion, in line with the average analyst estimate of $1.08 billion. Adjusted earnings fell 13 percent on the year to 34 cents per share, beating the average analyst estimate of 33 cents per share.
“I’m very pleased with our execution, especially as we’ve continued to invest in and strengthen our core business,” commented CEO Marissa Mayer. “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.”
Yahoo has had a wild ride on the stock chart over the past year. Shares are up nearly 117 percent over the past 52-week period, and have climbed nearly 70 percent this year to date, leaving both the S&P 500 and its competitors in the dust. The S&P has returned a comparatively unattractive 18.75 percent over the past year, and Google’s (NASDAQ:GOOG) 18.24 percent growth is equally underwhelming.