In Q1, Yahoo Beats Estimates

Positive numbers may translate into leverage against Microsoft
By Nick McMaster,  Newser Staff
Posted Apr 22, 2008 4:09 PM CDT
A Times Square news ticker flashes a headline about Microsoft above a billboard for Yahoo! in New York in this Friday, May 4, 2007 file photo. A reader-submitted question about Microsoft and Yahoo is...   (AP Photo/Mark Lennihan, file)
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(Newser) – Yahoo posted an increase in net income and reported sales that beat estimates in the first quarter, the company reported today. The jump in profit to $542.2 million translates to 37 cents per share, up from 10 cents a share a year ago—a number reflecting a onetime $401 million gain related to the Alibaba deal, the San Jose Mercury News reports.

Adjusted for the deal, net income was 11 cents per share, still 2 cents more than forecast. Yahoo hopes beating expectations will encourage Microsoft to sweeten its buyout offer, but it may not: “They needed to show fabulous results and these are good results,” an analyst told Bloomberg. “I don't know if they prove to investors that they can go it alone.''