Thompson Comes Through for Yahoo
It looks like Scott Thompson, Yahoo’s (NASDAQ:YHOO) new chief executive officer, could be starting to deliver on his promise to turn things around for the U.S. Web giant, as the company showed fairly strong earnings for Thompson’s first quarter on the job.
In the fiscal first quarter, Yahoo brought in 23 cents a share on $1.07 billion in sales, the company said Tuesday after the bell. Earnings beat estimates by analysts, but revenue was unsurprising, with only a 1 percent increase from last year. Yahoo reported net income of $286 million in the three months ended March 31, compared with $223 million, or 17 cents a share, in the same period last year. Analysts polled by Thomson Reuters I/B/E/S expected an EPS of 17 cents.
Yahoo’s growth has floundered in recent years as it faced competition from Google (NASDAQ:GOOG) and Facebook. Thompson, who took the helm in January after a stint as president of PayPal (NASDAQ:EBAY), has already made several big moves in his efforts to increase profit, including the recent announcement of plans to lay off 14 percent of the company’s employees and reorganize management. Yahoo also recently filed a high-profile patent-infringement lawsuit against Facebook.
Thompson is expected to reveal more specifics about his strategic plan during Yahoo’s conference call with analysts on Tuesday afternoon. Yahoo said it foresees second-quarter net revenue to be between $1.03 billion and $1.14 billion. Yahoo shares closed Tuesday’s regular trading session at $15.01, and were trading at $15.30 in after hours trading.