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Yahoo Triples Profits After Cost-Cutting
Revenue falls, but downsized company earns $186M
(AP)
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Yahoo’s third-quarter profit more than tripled even though the company's quarterly revenue fell in the double digits for the third consecutive time. The earnings improvement reported today was primarily driven by extensive cost-cutting that has eliminated more than 2,000 jobs in the past year. The company, however, is still struggling to lure back advertisers that have clamped down on their budgets during the recession.
During the July-September period, Yahoo earned $186 million, or 13 cents a share, easily topping Wall Street estimates of 7 cents a share. That compares with income of $54 million, or 4 cents a share, last year. Revenue fell 12% to $1.58 billion but remained above forecasts. Shares in Yahoo gained 46 cents, or 2.7 percent, to $17.63 in extended trading after the release of results.
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