Investors were falling in love with Yahoo Inc. (Nasdaq:YHOO - news) again until the Internet icon's disheartening first-quarter results ruined the mood.
With both its profit and revenue missing analyst estimates for the first three months of the year, Yahoo left Wall Street wondering how much longer it will take the Sunnyvale-based company to regain its financial momentum after stumbling through much of 2006.
Reflecting hopes for a more rapid comeback, Yahoo's stock price had surged by 26 percent so far this year heading into Tuesday's earnings announcement.
But the optimism quickly faded after Yahoo revealed its first-quarter profit had fallen by 11 percent to $142.4 million, or 10 cents per share. That compared with net income of $159.9 million, or 11 cents per share, at the same last year.
The results were a penny below the average earnings estimate among analysts surveyed by Thomson Financial.
The letdown zapped Yahoo's stock, which plummeted $2.53, or 7.9 percent, in after-hours trading Tuesday. Before the disappointing news, Yahoo shares had gained 48 cents earlier in the day to close at $32.09 on the Nasdaq Stock Market.
No comments:
Post a Comment