(Yahoo! story updated with additional details on earnings report).
NEW YORK (TheStreet) -- Yahoo (YHOO) has posted a sharp first quarter earnings increase amid a 20% year-over-year increase in display advertising.
The company is expecting gross revenue for the second quarter of 2010 to be in the range of $1.6 billion to $1.68 billion. Analysts focus on net revenue, deducting traffic acquisition costs. Net revenue is forecast to be in the range of $1.13 billion to $1.19 billion, compared with the Wall Street consensus of $1.18 billion for Yahoo!.
Yahoo! reported net income attributable to Yahoo! of $310 million, or 22 cents, compared with $118 million, or 8 cents, the year before. The company posted non-GAAP net income of 15 cents a share. Gross revenue was at $1.597 billion for the first quarter, up 1% from a year earlier. Net revenue was at $1.130 billion for the first quarter, down 2.2% from a year earlier.
Thomson Reuters' average estimate for Yahoo's first quarter earnings was 9 cents a share on net revenue of $1.17 billion.
"We had a good quarter, delivering income from operations higher than our outlook," Yahoo! CEO Carol Bartz said. "Thanks to our efforts, our search share has stabilized."
Despite the seemingly positive report, Yahoo! stock has slid 2.6% to $17.90 in after hours trading.
-- Reported by Andrea Tse in New York
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