Yahoo results beat Street estimates
The company sees revenue rise in 2012 for the first time since 2008. Yahoo expects to invest in its properties, with payoff beginning in the second half of 2013.
Yahoo (YHOO) shares rose as much as 5% after hours before pulling back slightly on Monday after the Internet search provider reported fourth-quarter results that, after one-time charges, beat Wall Street estimates. At the same time, the company reported a small gain in revenue net of traffic acquisition costs (TACs), or payments to advertisers, for the fourth quarter and the year. The gains were the first after three straight yearly declines.
Shares were up 28 cents to $20.59. The shares had traded to $21.30 before dropping back below $21, If the gain holds on Tuesday, it would be a 52-week high and the highest price for the shares since 2008.
The relatively bullish report was the first for a full quarter since Marissa Mayer became CEO in mid-July after leaving Google (GOOG). Yahoo shares closed at $20.31 in regular trading, down 6 cents. The shares are up 29.8% since Mayer became CEO on July 16.
Yahoo earned 32 cents a share on revenue of $1.22 billion net of TAC costs of payments to advertisers. Revenue was up 7% from a year ago.The earnings include 9 cents a share of restructuring costs and costs associated with shutting down its Korean business. Including those charges cut the earnings to 23 cents, compared with 24 cents a year ago.
If there were issues with Yahoo's report it was in display advertising. Revenue after traffic acquisition costs was down 4.8% to $520 million. But the company made that up with a 13.6% gain in search revenue to $427 million.
Revenue grew 8.1% to $940 million in the Americas during the quarter while revenue from Europe was lower and Asia was up slightly.
For the first quarter, Yahoo expects $1.07 billion to $1.16 billion in revenue net of traffic acquisition costs. That's up slightly from a year ago. The company expects to invest in its properties. That should start to show gains in the second half of the year.
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