RealTime IT News

Yahoo Performs As Expected

Yahoo delivered results and guidance after the close on Tuesday that were pretty much as expected.

Yahoo's third-quarter earnings rose 80% from the year-ago quarter to 9 cents a share, in line with estimates, while revenues after traffic acquisition costs jumped 84% to $655.4 million, above $644.7 million forecasts. Net advertising revenue grew 10% sequentially from the second quarter, as online advertising remained strong.

"We accelerated the pace at which new products and services were developed, which in turn helped increase the level of user engagement across the Yahoo! network," said Yahoo CEO Terry Semel. "Our engaged audience enables us to deliver an unmatched set of advertising opportunities, providing deeper value to our marketers, and supporting the mantra that great products are the key to a great business."

Looking ahead to the fourth quarter, Yahoo said it expects revenues of $710-760 million, compared to $727.8 million estimates.

Shares of Yahoo rose 1% after hours.

Also after the close, Intel gained 3% after the company missed earnings and gross margin estimates, but investors were cheered by better than expected revenues and inventory levels. The chip sector has been bettered by high inventories and lower than expected demand this year.

During the day, stocks rebounded from a steep sell-off, saved by a late drop in crude oil prices.

The Nasdaq slipped 3 to 1925, the S&P 500 lost 2 to 1121, and the Dow gave back 4 to 10,077. Volume rose to 1.32 billion shares on the NYSE, and 1.52 billion on the Nasdaq. Decliners led 17-15 on the NYSE, and 17-13 on the Nasdaq. Downside volume was 66% on the NYSE, and 59% on the Nasdaq. New highs-new lows were 91-39 on the NYSE, and 76-55 on the Nasdaq.

Philips fell 3% on a warning.

Travelzoo surged 11% after reporting a 12-cent-per-share profit.

Infosys jumped 5% on its results.

Level 3 rose 10% on a contract with Northrop Grumman.

C-Cor and CommScope tumbled on disappointing results.