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.
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