Yahoo 4Q Profit Soars, but Misses Views
Tuesday January 17, 4:59 pm ET
By Michael Liedtke, AP Business Writer
Yahoo Fourth-Quarter Profit Soars 83 Percent to $683.2M, but Falls Short of Analysts' Estimates
SAN FRANCISCO (AP) -- Yahoo Inc.'s fourth-quarter profit surged 83 percent as advertisers continued to shift spending to the Internet, but it wasn't enough to produce a profit that lived up to lofty expectations for the Web's most heavily trafficked destination.
The Sunnyvale-based company said Tuesday that it earned $683.2 million, or 46 cents per share, during the three months ended in December. That compared with net income of $372.5 million, or 25 cents per share, at the same time in 2004.
The 2005 results included a large accounting gain triggered by a complex deal that left Yahoo with a 40 percent stake in Alibaba.com, China's largest e-commerce company.
If not for that gain and other items unrelated to its ongoing operations, Yahoo said it would have earned 16 cents per share. That figure fell a penny below the average estimate among analysts polled by Thomson Financial.
Revenue for the quarter totaled $1.5 billion, a 39 percent increase from $1.08 billion in the comparable 2004 period.
After subtracting the advertising commissions that Yahoo paid to other Web sites, the company's fourth-quarter revenue stood at $1.07, in line with analyst estimates.
Yahoo released its report after the stock market closed Tuesday. The company's shares gained 21 cents to close at $40.11 on the Nasdaq Stock Market, then plunged $4.65, or 11.6 percent, in extended trading.
Because Yahoo is the first major Internet company to disclose how it fared during 2005's final quarter, the report has become a focal point for investors trying to figure out just how much more advertising migrated online during the busy holiday shopping season. |
