Yahoo's Earnings Top Expectations

May indicate new CEO has stopped company's slide

By Colleen Barry, Newser Staff

Posted Oct 17, 2007 6:01 AM CDT

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Yahoo's Earnings Top Expectations — Yahoo! co-founder Jerry Yang speaks at MacWorld Conference & Expo in San Francisco, in this Tuesday, Jan. 9, 2007 photo. Yahoo Inc. Chairman Terry Semel ended his six-year tenure as chief executive officer in June and handed over the reins to Yang in the Internet icon's latest attempt to regain investor... (Associated Press)

Yahoo reported better-than-expected sales and profits for the third quarter yesterday, pushing its stock up 10% in after-hours trading—despite having fallen 4% during regular market hours. The company pulled in a net income of $151 million, or 11 cents a share, slightly behind earnings for this time last year, but well ahead of the 8 cents a share predicted on the street.

This quarter is the first full one under new CEO Jerry Yang, who took over in June in a shakeup triggered by the company's poor performance. "Things may be stabilizing. Advertisers are not defecting," said one analyst. Yahoo also yesterday announced multi-year advertising deals with Cars.com, Forbes.com, Ziff-Davis Media and WebMD. (More Yahoo stories.)

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