After the stock market closed today, Yahoo reported its earnings for the quarter ended September 30, 2010.
Revenue was $1,601 million for the third quarter of 2010, a 2% increase from the third quarter of 2009.
Income from operations for the third quarter of 2010 was $189 million, an increase of 107%.
Excluding restructuring charges of $17 million in the third quarter of 2009 and $6 million in the third quarter of 2010, income from operations increased 80% year over year.
Net earnings per diluted share for the third quarter of 2010 was $0.29, compared to $0.13 in the third quarter of 2009, a 126%increase.
“We delivered a solid quarter with good display advertising revenue growth, big gains in operating income, and margins that were double what they were last year,” said Carol Bartz, president and CEO of Yahoo!. “Because we recognize the tremendous value of our assets, we also dramatically stepped up our stock repurchases. We’ve now bought back more than 7% of the company’s stock this year alone.”
“We’ve made substantial progress this year toward executing our strategies for enhancing profitability and resuming revenue growth. Margins are expanding; owned and operated display advertising is up 18% so far this year; product rollouts are accelerating thanks to modernization of our underlying platforms; and we continue to implement our search alliance with Microsoft on schedule,” continued Bartz. “We’ve disposed of non-core assets while making strategic acquisitions like Associated Content and Citizen Sports, and we’ve developed key partnerships with Facebook, Twitter, and Zynga to enhance the Yahoo! experience for our 600 million users.”
Yahoo’s results for the three months ended September 30, 2010 reflect $81 million in search operating cost reimbursements from Microsoft under its Search and Advertising Services and Sales Agreement.
Marketing services revenue increased 4% revenue decreased 15%, compared to the third quarter of 2009.
However in its outlook guidance Yahoo said 4th sales will be $1.13 billion to $1.23 billion.
Analysts had estimated $1.25 billion on average.
Shares of Yahoo are up 1% in after hours trading