Yahoo Inc. posted a second-quarter profit that more than doubled, but it offered a current-quarter revenue forecast that fell short of some Wall Street estimates.

Analysts said Yahoo's results and a higher full-year forecast underscored its success in winning more Internet advertising, but they cautioned that the 35 percent rally in its shares in the past quarter had left it vulnerable to a sell-off when earnings met but did not exceed bullish expectations.

Sunnyvale, California-based Yahoo posted a second-quarter net profit of $112.5 million, or 8 cents per share, boosted by strong advertising sales. Its year-ago profit was $50.8 million, or 4 cents per share.

Revenue, excluding money Yahoo pays to advertising partners, grew to $609.1 million, less than some analysts expected. Revenue was $321.4 million a year earlier on a comparable basis.

Analysts had expected Yahoo to earn 7 cents to 10 cents a share on revenue of between $590.6 million to $627.5 million, according to Reuters Estimates.

Yahoo forecast current-quarter revenue, excluding traffic acquisition costs, of $610 million to $650 million.

Going into Yahoo's earnings, analysts had said that much of the good news had already been priced into the stock during a second-quarter rally.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved