Yahoo! Tops Expectations, but Cautious Words Haunt Investors

Updated from 6:05 p.m. ET

Internet portal Yahoo! (YHOO Quote) exceeded Wall Street's earnings expectations by a penny, while racking up a 90% increase in revenue that indicates the online advertising market may yet have life. But investors continued to fret about the company's outlook.

Yahoo!'s shares were up initially in after-hours trading, but then they began to fall, trading recently at $75.63 each, according to Island. They finished regular trading Tuesday at $82.69.

For the third quarter, net earnings, excluding certain items, rose to $81 million, or 13 cents a share, from $38.5 million, or 6 cents a share, a year earlier. The consensus estimate of analysts polled by First Call/Thomson Financial was 12 cents. The results exclude a one-time charge related to acquisitions, as well as other items. ...