Yahoo Q1 earnings decline as it hopes to find buyer

Yahoo published its first quarter earnings on Tuesday after the bell, reporting earnings per share of $.08 and revenue of $1.09 billion, barely beating analyst expectations.

The first quarter revenue represents a 12 percent drop year-over-year, and the EPS is cut close to half compared to 15 cents per share in the previous year.

The lackluster earnings come as the company has begun shopping its core business around for a buyer, after increasing pressure from activist hedge fund Starboard and other investors. Yahoo is currently in a proxy fight with Starboard for board seats, while Mayer has vowed to continue with her three year turn around plan.

"I'm pleased that we delivered Q1 results in line with our expectations. Our 2016 plan is off to a solid start as we continue to focus on driving efficiency, lowering costs, and improving long-term growth," Marissa Mayer, CEO of Yahoo, said in a prepared statement. "In tandem, we made substantial progress towards potential strategic alternatives for Yahoo. Our board, our management team, and I are completely aligned on this top priority for shareholders."

Within Yahoo's earnings report, it shows the core business of Yahoo is continuing to falter.

Revenues for the group, which is the main attraction in the bidding process and includes the Yahoo homepage and Mail, has dropped to $859 million, compared to $1.04 billion a year ago.

Mobile has also declined, with revenues moving from $291 million to $261 million from the last quarter of 2015 to the first quarter of 2016.

For overall earnings, analysts were expecting 7 cents a share and revenues of $1.08 billion, according to a consensus compiled by Thomson Reuters. Shares of Yahoo jumped slightly after the announcement as Yahoo barely topped estimates.

Mayer and Co. will hold a webcast at 5PM EST to discuss the numbers with financial analysts.