Facebook Twitter

Yahoo rises after earnings exceed expectations

SHARE Yahoo rises after earnings exceed expectations

SAN JOSE, Calif. — Shares of Yahoo! Inc. surged 6 percent in trading Thursday after the Internet bellwether's second-quarter earnings edged past analysts' expectations.

The report from Yahoo on Wednesday gave no indication, however, that the company is out of its slump. Results in the current quarter could fall slightly below estimates.

After two quiet months since taking over as chairman and chief executive, former Hollywood executive Terry Semel promised to make important moves soon — including acquisitions — to take better advantage of the "vast yet unrealized potential" of Yahoo's user base.

"No single event will transform this company," Semel said in a conference call. "What you'll see is a series of actions, and you'll see them begin to unfold this quarter."

Yahoo showed its third straight quarterly net loss: $48.5 million, or 9 cents per share, in the three-month period ending June 30, compared to a profit of $53.3 million, or 9 cents per share, a year ago.

Revenue slipped 33 percent, to $182.2 million from $273.0 million last year, but was still better than the $175.1 million Wall Street expected.

Excluding restructuring charges and other one-time items, Yahoo earned $8.7 million, or 1 cent a share. Analysts surveyed by Thomson Financial/First Call were predicting break-even per-share results.

Yahoo also said third-quarter results would be "approximately break-even," with revenues dropping to between $160 million and $180 million. The consensus Wall Street forecast, according to Thomson Financial/First Call, is for earnings of 1 cent per share on revenue of $184.5 million.

Executives still expect full-year earnings per share between 2 cents and 6 cents. That is in line with the consensus forecast of 4 cents, though chief financial officer Susan Decker said the high end of the range is likely only if the overall economy improves in the second half.

Shares of Yahoo were up $1.03 to $18.06 in early trading on the NASDAQ Stock Market.

Sunnyvale-based Yahoo said it now has 200 million registered users, up from 156 million this time last year. Jupiter Media Metrix said 104.4 million visitors around the world checked out Yahoo pages at home in May, making Yahoo more popular than any place on the Internet other than the sites run by Microsoft and AOL-Time Warner.