Yahoo Q1 Profit Tops Street, Verizon Deal To Close In June

(RTTNews) - Yahoo! Inc. (YHOO) Tuesday reported a profit for the first quarter that trumped Wall Street estimates, driven largely by higher-than-expected revenues.

Sunnyvale, California-based Yahoo reported first-quarter profit of $99.4 million or $0.10 per share, compared to last year's loss of $98.3 million or $0.10 per share. Last year, Yahoo recorded a restructuring charges of $57.2 million.

On an adjusted basis, earnings rose to $0.18 per share from $0.08 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.14 per share.

Yahoo's revenue's for the quarter rose to $1.33 billion from $1.09 billion last year, reflecting a change in revenue presentation. Without that change, revenue would have declined 6 percent to $1.02 billion. Analysts had a consensus revenue estimate of $1.23 billion.

Traffic-acquisition costs rose to $494 million from $228 million last year.

"Our Q1 performance reflects solid financial and operational execution in the new year," said Marissa Mayer, CEO of Yahoo. "As we enter our final quarter as an independent company, we are committed to finishing strong and planning for the best possible integration with Verizon.

Yahoo said it continues to work with Verizon on integration planning for the sale of its operating business. The company anticipates the closing to occur in June 2017.

In July last year, Verizon agreed to acquire Yahoo's core internet business for $4.83 billion. However, the deal seems to have reached a hurdle because of the data breach at the internet company that affected more than 500 million accounts.

YHOO closed Tuesday's trading at $42.40, up $0.35 or 0.83%, on the Nasdaq. The stock, however, slipped $0.10 or 0.21% in the after-hours trade.