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Yahoo! Gets 105% growth in net profit

26 January 2011 09:02 (UTC +04:00)

Baku - APA-Economics. Yahoo reported fourth-quarter sales and earnings that lived up to Wall Street’s expectations, with net income rising 120% compared to last year, CNNMoney reported.

Net earnings came in at 24 cents per share, excluding restructuring costs. Analysts polled by Thomson Reuters were expecting 22 cents a share.

Excluding traffic acquisition costs -- revenue shared with partners -- Yahoo (YHOO, Fortune 500) had sales of $1.21 billion. That was a 4% drop from the fourth quarter of 2009. Yahoo attributed the decline in part to the sizeable share of its sales that it forks over to Microsoft, whose Bing technology underpins Yahoo’s search site.

The Microsoft revenue share was the subject of several questions during a conference call with analysts.

"We’re confident the alliance will show positive growth in search by the end of the year," CEO Carol Bartz said on the call.

Yahoo expects its first-quarter 2011 revenue to come in between $1.02 billion and $1.08 billion.

Shares dropped 3.4% in after-hours trading following the financial report