×
You will be redirected back to your article in seconds

Yahoo! reports fail to wow Wall Street

Netco shares closed at $33.40

The seemingly golden Terry Semel has taken his first blow atop Yahoo!: Netco saw its stock plunge 11% Wednesday after reporting second quarter earnings that fell squarely within its guidance but disappointed investors used to company continually beating predictions.

It was the first earnings report for Yahoo! in over a year that failed to wow the Street.

Revenue for the quarter was $1.25 billion, up 51% from the same quarter a year ago. Net income excluding a one-time sale was $192 million, up 69%. Revenue excluding the costs Netco pays to distribution partners was $875 million, right in the middle of company’s $855 million-$895 million guidance.

Because Yahoo! has consistently beat expectations for the past several quarters, analysts seem to have considered that de rigeur.

With its first solid but unspectacular quarter in a while, though, Wall Street panicked at a sign that online media may no longer be on the explosive growth curve it has enjoyed for the past couple of years.

As a result, stock in competitor Google opened $4 below its Tuesday close, though they ended up slightly higher thanks to a boost from strong earnings at eBay late in the day.

In the current quarter, Yahoo! is predicting revenue excluding costs to acquire traffic from distribution partners of $880 million-$930 million and operating income before depreciation and amortization costs of $350 million-$380 million, about even with last quarter’s $368 million.

Yahoo! shares closed at $33.40 Wednesday.

More Scene

  • Nicole KidmanWarner Bros. Pictures World Premiere

    How James Wan Convinced Nicole Kidman to Star in 'Aquaman'

    While some actors dream of playing a superhero, that wasn’t the case for the cast of “Aquaman.” “I knew nothing about this,” Amber Heard, who plays Mera in the James Wan-directed action film, told Variety at the movie’s Los Angeles premiere. “I knew nothing about comic books in general. I didn’t know anything about this [...]

  • Hugh Jackman'To Kill a Mockingbird' Broadway

    'To Kill a Mockingbird's' Starry Opening: Oprah, Hugh Jackman, Anne Hathaway and More

    The Shubert Theatre in New York City last was filled on Thursday night with Oscar winners, media titans, and, of course, Broadway legends who came out for the opening of “To Kill a Mockingbird.” The starry guest list included Oprah Winfrey, Barry Diller, “Les Misérables” co-stars Hugh Jackman and Anne Hathaway, Jessica Chastain, Gayle King, [...]

  • Clint Eastwood and Alison Eastwood'The Mule'

    Clint Eastwood: Why Alison Eastwood Came Out of Acting Retirement for Her Dad

    Clint Eastwood’s daughter Alison Eastwood was done with acting after appearing in 2014’s “Finding Harmony.” Or so she thought. It was a Friday night and she and her husband were heading to dinner when her father’s producer Sam Moore called. “He [says], ‘You know, your dad wants you to do this film,” Alison recalls. “I [...]

  • John CenaSports Illustrated Sportsperson of the

    John Cena on WWE's Acceptance by Hollywood and the Professional Sports World

    John Cena says the WWE is finally getting the attention it deserves by Hollywood and the professional sports world. “I’m just glad that no longer are we looked down upon, not only by the sport industry, but by the performing arts industry,” Cena told Variety on Tuesday night in Beverly Hills at Sports Illustrated’s Sportsperson of [...]

  • Steve Carell Welcome to Marwen

    Steve Carell on New Film 'Welcome to Marwen' and Reprising His 'Anchorman' Character

    In 2000, Mark Hogancamp was nearly beaten to death by five men outside of a bar. Left with brain damage and little money to afford therapy, Hogancamp began creating miniature doll versions of himself, his friends, and his attackers as a way to cope. This true story inspired the 2010 documentary “Marwencol” and the upcoming [...]

More From Our Brands

Access exclusive content