And buried in Yahoo’s slides was downward guidance for the third quarter, including revenue of $1 billion to $1.4 billion, down from $1.7 billion.
Earnings per share were 16 cents after excluding onetime charges.
On average, 35 analysts polled by Thomson Reuters estimated earnings of $0.18 .18 per share for the quarter.
Munster continued that it is “highly likely” Yahoo’s management team will be asked about the spinoff’s progress during its post earnings conference call.
At .24bn, Yahoo’s sales smashed analysts’ expectations.
CEO Marissa Mayer needs to tell shareholders that Yahoo will “get that spin done one way or another”, said BGC Partners analyst Colin Gillis. The company earlier this year renegotiated its partnership with Microsoft Corp., a deal that gave Yahoo more control over the search results and ads it shows on desktops and mobile phones.
Mayer has been orchestrating a turnaround at Yahoo, and several numbers posted Tuesday suggests that she is gaining a bit of traction. That investment was made by Yahoo co-founder Jerry Yang a decade ago. Thought leaders from the biggest brands and most disruptive companies will share winning growth strategies on the most pressing challenges marketing leaders face today.].
Yahoo lives off its revenue through ads, and that’s been a trouble spot. “Further, our display business saw the most substantial revenue growth since 2010”.
Ms. Mayer, three years into her tenure as chief executive of the aging Internet portal, is betting heavily on emerging areas including mobile and video ads.
In mobile advertising in the United States, Yahoo is eclipsed by Google and Facebook, which are expected to take around 35 percent and 17 percent respectively this year.
Yahoo shares were down as much as 3 percent in extended trading.
“Overall this has been a really solid quarter, even display is up and this seems like Yahoo is on good footing for the Alibaba tax exit and cash distribution”.