Yahoo Tops Earnings Expectations, While Revenue Remains Weak (And Outlook Even Worse)
Yahoo turned in a much-needed solid quarter in its third-quarter earnings report, with slightly better-than-expected net income, although still weak revenue.
Wall Street consensus was that Yahoo’s net income would rise to 15 cents a share from 13 cents a year ago and that revenue would be a flattish $1.13 billion.
Instead, Yahoo’s net revenue was $1.12 billion–which is with traffic acquisition costs taken out–on earnings of 29 cents a share. But net earnings per diluted share for the third quarter of 2010 included a benefit of 13 cents per diluted share related to the gain on the sale of HotJobs.
The revenue weakness is worrisome, as it indicates a lack of search advertising growth at Yahoo, even as competitors such as Facebook expand rapidly as social networking explodes.
Even more important is a weaker outlook for the fourth quarter.
In addition, the key metric of page views was down four percent in the quarter, while employee growth was up seven percent.
See it all below in the official press release: