Shares of Yahoo (YHOO) were advancing about 1% in after-hours trading on Monday as the company posted stronger-than-expected results for the fourth quarter of 2016.
After the closing bell, Yahoo reported adjusted earnings of 25 cents a share, higher than Wall Street's predictions for adjusted earnings of 21 cents a share. Revenue came in at $1.47 billion, which exceeded analysts' estimated $1.30 billion.
The Sunnyvale, CA-based company also provided an update on its pending $4.8 billion acquisition by Verizon (VZ) - Get Verizon Communications Inc. Report , noting that it now expects the deal to close in the second quarter of 2017, rather than the first quarter of this year. More information about the deal may be revealed in Verizon's earnings due out before Tuesday's market open.
"...The opportunities ahead with Verizon look bright," said Yahoo CEO Marissa Mayer in a statement. "In addition to integration planning, our top priority continues to be enhancing security for our users. With security protocols and password changes in place, approximately 90% of our daily active users have already taken or do not need to take remedial action to protect their accounts..."
The internet giant has been grappling with the fallout from a string of recent account breaches which are estimated to have affected more than 1 billion user accounts.
Yahoo said gross search revenue was $821 million during the quarter, representing a 6% decrease year-over-year. Display revenue, meanwhile, fell 5% year-over-year to $573 million.
The number of paid clicks declined 21% year-over-year, which missed analysts' estimates for a 10% decline year-over-year in paid clicks.
Additionally, Yahoo declined to host a fourth-quarter earnings call on Monday as a result of the pending Verizon deal, as was the case in the previous quarter.