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Yahoo! Ticks Higher Following Q3 Results

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Yahoo! Ticks Higher Following Q3 Results

Shares of Yahoo! (NASDAQ:YHOO) have done especially well so far this year on the back of renewed optimism and executive changes. Since the start of the shares of the company have soared to the upside by an astonishing 70%, not too bad for a company which has underperformed the market in recent years. Following the company’s third quarter report after the market close on Tuesday, shares continued their path to the upside. Yahoo announced it generated $297 million in net income in the third quarter, or 28 cents a share, compared to $3.16 billion, or $2.64 a share in the third quarter of 2012, when Yahoo’s results included a $2.8 billion gain from the sale of a portion of its stake in Alibaba Group.

These results came in largely in line with analyst consensus estimates. The company reported $1.08 billion in net revenue, excluding fees paid to third-party websites, compared with $1.09 billion in the third quarter of last year. The average analyst expectation was for net revenue of $1.082 billion according to Thomson Reuters. Excluding certain items, Yahoo reported it earned 34 cents a share, 1 cent above the consensus analyst were looking for.

Chief Executive Officer, Marissa Mayer, stated the company has more than 800 million monthly users, up 20 percent over the past 15 months. While these metrics may speak to the success of the brand turnaround, the road ahead isn’t without many, many, hurdles. As with a number of its competitors, display ad revenue dropped by 7 percent to $470 million, compared to the results reported within the third quarter of last year. The company expects fourth-quarter revenue excluding traffic-acquisition costs to come in between $1.18 billion and $1.22 billion, below analyst expectations of $1.40 billion. In the extended hours session the company’s stock traded higher by 1 percent to $33.70, at the time of this writing. It remains likely that we see a number of analyst comment of the quarter in the remainder of the week.

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