Yahoo Shows 3rd Quarter Profit, Revenue Still Below Par

October 20th, 2010 at 10:16 am
 


Yahoo certainly has seen better days. But it seems that things might be looking a bit better for the the company that has been struggling for sometime now. Or are they? For the meantime, Yahoo may still be on good ground as they report a profitable 3rd quarter, according to their released financial reports.

According to the financial reports that were released Tuesday, Yahoo reported earnings that slightly beat accepted forecasts for the 3rd quarter. The Internet company reported earnings of $0.29 per share which was higher than the$0.15 per share earnings that many analysts estimated. The earnings may be partly due to the one time earnings set by the sale of Yahoo HotJobs during the same quarter.

But despite the profits for this quarter, Yahoo still experienced lackluster growth in terms of revenue as it showed an almost flat revenue numbers, only slightly higher compared to revenue posted in the same period last year. Of the revenue breakdown, display advertising seems to provide the most promise as it enjoyed a 17 percent improvement. But this was somewhat offset by a 7 percent decrease in search advertising revenues.

The numbers also showed that Yahoo experienced an increase in operating income from 6 percent in the same quarter last year to 12 percent for the 3rd quarter this year. It may not be entirely clear whether Yahoo might be on its way to recovering the confidence of its stockholders since the botched Microsoft deal that the company should have taken a year or so ago. Yahoo stocks average somewhere around $15-$16 per share, way below the $33 per share price that Microsoft offered in May of 2008.

 

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