Despite some upheaval following the sudden departure of former CEO Carol Bartz and the resurrection of Microsoft buyout rumors, Yahoo managed to deliver some good news for the third quarter of 2011.
Yahoo reported third quarter net earnings of $293 million, or 23 cents a share (statement). Non-GAAP earnings were 21 cents a share on a revenue excluding traffic acquisition costs of $1.072 billion, a 5 percent decrease from the third quarter of 2010.
Wall Street was looking for earnings of 17 cents a share on revenue $1.07 billion.
CFO and interim CEO Tim Morse summed up the quarter in a statement:
We’re pleased that revenue, operating income and EPS were all above consensus this quarter. My focus, and that of the whole company, is to move the business forward with new technology, partnerships, products, and premium personalized content — all with an eye toward growing monetization.
For the outlook, Yahoo is predicting a revenue of $1.125 billion to $1.235 billion at the end of Q4.
For the fourth quarter of 2011, Wall Street is looking for earnings of 22 cents a share on revenue $1.21 billion.
Key points:
- Yahoo has 10 number one properties worldwide and ranks among the top three in 21 categories worldwide.
- Yahoo and ABC News partnered to bring ABC News content to Yahoo, including Good Morning America and a live stream of ABC News anchor George Stephanopoulos interviewing President Barack Obama at the White House.
- Yahoo introduced more original Web shows in tandem with the beta launch of re-vamped video destination, Yahoo! Screen.
- Yahoo also has ten out of the top ten original video programs in the U.S. on the Web.
By the numbers:
- Income from operations decreased 6 percent to $177 million in the third quarter of 2011, compared to $189 million in the third quarter of 2010.
- Free cash flow was $247 million for the third quarter of 2011, a 1 percent decrease compared to $250 million for the same period of 2010.
- GAAP search revenue was $467 million, a 44 percent decrease compared to $839 million for the third quarter of 2010.
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