Yahoo Sees Modest Growth in 2Q

SUNNYVALE, Calif. (AP) — Yahoo Inc.'s turnaround effort picked up a little more steam in the second quarter, but revenue grew at a slower rate than analysts hoped. The stock fell nearly 5 percent after the release of results. The results released Tuesday still marked Yahoo's best performance since it hired no-nonsense CEO Carol Bartz 18 months ago.

SUNNYVALE, Calif. (AP) — Yahoo Inc.'s turnaround effort picked up a little more steam in the second quarter, but revenue grew at a slower rate than analysts hoped.

The stock fell nearly 5 percent after the release of results.

The results released Tuesday still marked Yahoo's best performance since it hired no-nonsense CEO Carol Bartz 18 months ago.

Yahoo's modest growth provided the latest sign that technology and electronic commerce are recovering from the Great Recession a little quicker than other parts of the economy.

The company earned $213 million, or 15 cents a share, in the three months ending in June. That represented a 51 percent increase from net income of $141 million, or 10 cents a share, at the same time last year.

Yahoo's earnings per share of 15 cents were a penny above analyst estimates.

Revenue for the period edged up 2 percent to $1.6 billion, from $1.57 billion.

Shares of Yahoo fell 74 cents, or 4.9 percent, to $14.46 in extended trading Tuesday. Earlier, it closed the regular session up 10 cents, or 0.7 percent, at $15.20.

More in Home