NEW YORK (TheStreet) -- Yahoo! (YHOO)  shares are tumbling 1.22% to $32.42 in after-hours trading on Tuesday following the Internet firm's third quarter fiscal 2015 earnings results that fell short of analysts' estimates.  

Earnings for the latest quarter came in at 15 cents a share, falling short of analysts' estimates of 17 cents a share.

Revenue came in at $1.226 billion, missing analysts' estimates of $1.256 billion. 

In the same period the year before, the company earned 52 cents a share on revenue of $1.09 billion.

Even though earnings results were weak, the company said it saw growth in mobile and social segments.

"Our Q3 results were largely within our forecasted expectations," CEO Marissa Mayer stated.

In addition, Yahoo! is focusing on its planned spinoff of its stake in Alibaba Group Holding (BABA), which is its "top priority." 

"We continue to strive to complete the spin as quickly as we can," Mayer added.

Along with the financial results, the company said it reached a search-advertising agreement with Alphabet (GOOGL). 

Looking ahead, the company reduced its fourth quarter revenue forecast to a range of $1.16 billion to $1.2 billion, CNBC.com reports.

Separately, TheStreet Ratings team rates YAHOO INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate YAHOO INC (YHOO) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

You can view the full analysis from the report here: YHOO

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