Shares of Yahoo! ( YHOO) dropped sharply in late trading Tuesday after the Internet portal's second-quarter revenue missed Wall Street's target. Yahoo! reported a profit of $164 million, or 11 cents a share, compared with $755 million, or 51 cents a share, a year ago, when results were boosted by an investment gain. Net revenue, excluding the money Yahoo! shares with search advertising partners, rose 28% from a year earlier to $1.12 billion. The earnings matched Thomson First Call's mean analyst estimate of 11 cents, but sales fell short of the $1.14 billion Wall Street expected. For the third quarter, Yahoo! expects revenue of $1.12 billion to $1.23 billion, where analysts were looking for $1.20 billion. For the year, the company sees revenue of $4.6 billion to $4.85 billion, compared with analysts' forecast of $4.78 billion. The company also delayed the rollout of new search technology. Shares sank $4.39, or 14%, to $27.85 in after-hours trading. Shares of search rival Google ( GOOG) dropped $11.45, or 2.8%, to $391.60 in sympathy. Illumina ( ILMN) shares vaulted after hours as the company posted blowout second-quarter results and offered a higher-than-expected guidance. The company, a maker of tools for genetic analysis, reported net income of $6.8 million, or 14 cents a share, reversing a year-earlier loss of $18.5 million, or 46 cents a share. Analysts expected earnings of 3 cents a share. Illumina's revenue jumped to $41.6 million from $15.8 million, compared with analysts' forecast of $33 million. Looking ahead, Illumina forecast third-quarter earnings of 22 cents to 24 cents a share, before items. Analysts predict earnings of 4 cents a share. The company sees revenue of $44 million to $48 million, compared with Wall Street's estimate of $36 million. For the year, Illumina projects earnings of 27 cents to 31 cents a share, or 61 cents to 82 cents a share before options costs. Analysts see 2006 earnings of 13 cents a share, including options. Illumina anticipates full-year revenue of $160 million to $170 million, compared with Wall Street's projection of $138 million. The company's shares jumped $4.44, or 15%, to $33.30 after hours.
Cognex ( CGNX) shares fell after the company gave a third-quarter revenue forecast below Wall Street's expectation. The company, which makes computerized security-inspection systems, posted second-quarter earnings of $11.4 million, or 24 cents a share, up from $7.8 million, or 17 cents a share, a year earlier. Excluding a tax-settlement gain and options costs, earnings were 27 cents a share. Analysts expected earnings, including stock-option costs, of 21 cents a share. Revenue increased 15.5% to $63.1 million, compared with Wall Street's prediction of $63.2 million. For the third quarter, Cognex projects earnings of 19 cents to 23 cents a share. The company expects revenue in a range of $61 million to $64 million. Analysts forecast income of 22 cents a share and revenue of $66.1 million. Shares slipped $1.02, or 4.3%, to $22.73 after hours. Shares of Digitas ( DTAS) tumbled after the digital marketing company missed Wall Street's second-quarter revenue expectation and gave a weak outlook. The company reported income of $13.5 million, or 14 cents a share, up from $11.9 million, or 12 cents a share, a year ago. Adjusted earnings were 17 cents a share. Revenue rose to $190.9 million from $134.3. Analysts were looking for earnings of 16 cents a share on $102.2 million in revenue. For the third quarter, Digitas projects earnings of 7 to 10 cents a share, or 10 to 13 cents a share on an adjusted basis. Analysts had forecast adjusted earnings of 17 cents a share. For the full year, the company anticipates earnings of 41 cents to 49 cents a share. Adjusted earnings are expected to be 54 to 62 cents a share. Wall Street predicted a profit of 68 cents a share for the year. The company said it has had a "handful of specific client challenges." Shares shed $1.93, or 19%, to $8.30 after hours.
USANA Health Sciences ( USNA) slipped after its earnings report. The nutritional and personal-care products company said second-quarter earnings increased to $10.3 million, or 55 cents a share, from $9.5 million, or 48 cents a share, a year earlier. Revenue rose 15% to $93.9 million. Wall Street was looking for earnings of 52 cents a share on revenue of $93.2 million. Looking ahead, USANA expects third-quarter earnings of 55 cents to 57 cents a share, with revenue of $94 million to $96 million. Wall Street had projected earnings of 56 cents a share and revenue of $96.3 million. For the full year, the company trimmed its projected sales-growth rate to 15% to 17% from an earlier forecast of 15% to 20%. USANA said it expected earnings per share to grow 17% to 20%, from an earlier forecast of 15% to 20%. In late trading, shares fell 69 cents, or 1.9%, to $35.22. Railroad operator CSX ( CSX) posted better-than-expected second-quarter earnings, lifted its dividend and set plans for a stock split and buyback. The company's earnings rose to $390 million, or $1.66 a share, including insurance recoveries related to Hurricane Katrina and a tax gain. Those items boosted earnings by 50 cents a share. Excluding items, CSX's earnings of $1.16 a share beat analysts' forecast by 2 cents. A year earlier, earnings were $165 million, or 73 cents a share. CSX also set a 2-for-1 stock split and a $500 million buyback program. The company also declared a 10-cent dividend on a post-split basis, which is a 54% increase over its current payout. Still, shares fell 67 cents after hours to $64.75.