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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

(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.''

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 being answered as part of an Associated Press Q&A column called Ask AP.
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)
A sign in front of the Yahoo offices in Santa Clara, Calif. is seen Monday, April 21, 2008.  Yahoo, Inc. released quarterly earnings after the closing bell today.
A sign in front of the Yahoo offices in Santa Clara, Calif. is seen Monday, April 21, 2008. Yahoo, Inc. released quarterly earnings after the closing bell today.   (AP Photo/Paul Sakuma)
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