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Yahoo 1Q profit rises, but it might not thwart Microsoft

Yahoo Inc. delivered first-quarter results that surpassed analysts' modest expectations, but the performance might not be enough to fortify the Internet pioneer's defense against Microsoft Corp.'s takeover bid. The Sunnyvale-based company said Tuesday that it earned $542.2 million, or 37 cents per share, more than tripling from its profit of $142.4 million, or 10 cents per share, at the same time last year.

Most of the first-quarter improvement stemmed from a one-time gain of $401 million generated by Yahoo's stake in the parent company of Alibaba.com, a leading e-commerce site in China. If not for the Alibaba windfall, Yahoo would have earned 11 cents per share — comparable to its profit at the same time last year, on an apples-to-apples basis. The results were 2 cents above the average estimate among analysts surveyed by Thomson Financial. Revenue climbed 9 percent to $1.82 billion. After subtracting commissions paid to Yahoo's advertising partners, the revenue totaled $1.35 billion — just $30 million ahead of analysts' average projection.

Yahoo

Posted by | Tue, Apr 22, 2008 - 04:43 PM