No joy for Yahoo
World's No. 2 search engine reports results and guidance that disappoint investors; stock tumbles after-hours.
It looks like Yahoo! investors won't have any reason to yodel following the company's slightly disappointing second-quarter results and forecast for the third quarter issued Tuesday.
The company also announced during a conference call with analysts that long-awaited improvements to its search technology, which were expected to be rolled out at the end of the summer, will now be delayed until the fourth quarter. The stock nosedived after hours on the news.
The Sunnyvale, Calif.-based search engine reported second-quarter sales excluding ad revenue it shares with partners of $1.12 billion, up 28 percent from $875 million a year ago. Analysts were expecting Yahoo to post sales of $1.14 billion, according to First Call.
Earnings came in at $164 million, or 11 cents a share, in line with analysts' consensus forecasts of 11 cents.
Last year, Yahoo reported a profit of 10 cents a share, after factoring in the effect of stock options and excluding a large gain from the sale of an investment.
Yahoo also gave what some may view as tepid guidance for the third quarter.
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