This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Yahoo! Shares Jump on Strong Earnings, Asset Sale Talks (Update 1)

Stocks in this article: YHOO

Updated from 4:40 p.m. EST to provide comments from the conference call.

NEW YORK ( TheStreet) -- Yahoo! (YHOO) shares rose in extended trading after the company posted better-than-expected first-quarter results.

Yahoo! reported earnings of 23 cents per share on $1.08 billion in revenue. Analysts polled by Thomson Reuters were expecting earnings of 17 cents per share on $1.06 billion in revenue.

Regarding the company's recent layoffs, Chief Financial Officer Tim Morse said on the company's conference call he expects it will take approximately a year to realize the cost savings. Yahoo! recently laid off 2,000 workers in an effort to reorganize the business.

Yahoo! posted strong first-quarter results

The company also gave stronger-than-expected second-quarter revenue guidance. It said it expects revenue excluding traffic acquisition costs (TAC) to range from $1.03 billion to $1.14 billion. Wall Street's current consensus revenue view sits at $1.08 billion. Analysts estimates typically exclude TACs.

A big revelation on the conference call came from Chief Executive Officer Scott Thompson, who announced that Yahoo! is cutting 50 properties, but did not say which properties were being let go.

Thompson was also asked about the sale of its Asian assets, specifically its stake in Alibaba and Yahoo! Japan. Thompson noted that Yahoo! is "continuing to pursue active discussions with Alibaba."

"We are pursuing a simpler transaction in order to monetize a portion of our Alibaba stake," he said on the call. Thompson also acknowledged there is a valuation gap with regard to Yahoo! Japan, and said that noting was imminent about monetizing that stake.

"In the first quarter, Yahoo!'s results came in at the high end of our guidance range and beat consensus on revenue and profits," said Thompson in the press release, adding later: "We also made changes to resize the organization and establish a new leadership structure to quickly deliver the best user and advertiser experiences at scale."

The Sunnyvale, Calif.-based Internet company company ended the first quarter with $2.65 billion in cash, cash equivalents, and investments in marketable debt securities. Yahoo! said it bought back 5 million shares during the quarter.

Shares of Yahoo! ended the regular session higher, up 1.5% to $15.01. The stock tacked on another 2.6% after the bell, rising to $15.40, according to Nasdaq.com.

Interested in more on Yahoo!? See TheStreet Ratings' report card for this stock.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

-- Written by Chris Ciaccia in New York

>To follow the writer on Twitter, go to http://twitter.com/commodity_bull.

>To submit a news tip, send an email to: tips@thestreet.com

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs