Yahoo Q3 Profit Tops Wall Street

(RTTNews) - Yahoo! Inc. (YHOO) Monday reported a profit for the third quarter that increased from a year ago and also trumped Wall Street estimates.

Sunnyvale, California-based Yahoo reported a third-quarter profit of $162.8 million or $0.17 per share, an increase from last year's profit of $76.3 million or $0.08 per share last year.

On an adjusted basis, earnings rose to $0.20 per share from $0.15 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.14 per share.

Yahoo's revenue's for the quarter rose to $1.31 billion from $1.23 billion last year, reflecting a change in revenue presentation. Without that change, revenue would have declined 15 percent to $1.05 billion. Analysts had a consensus revenue estimate of $1.31 billion.

Traffic-acquisition costs rose to $448 million from $223 million last year.

In July, Verizon Communications Inc. agreed to acquire Yahoo for $4.83 billion. However, the deal seems to have reached a hurdle because of the data breach at the internet company that affected more than 500 million accounts. Yahoo is still conducting an investigation into the 2014 theft of user information, however, reports suggest Verizon might demand a renegotiation of the deal.

Marissa Mayer, CEO of Yahoo. "In addition to our continued efforts to strengthen our business, we are busy preparing for integration with Verizon. We remain very confident, not only in the value of our business, but also in the value Yahoo products bring to our users' lives. To that end, we take deep responsibility in protecting our users and the security of their information. We're working hard to retain their trust and are heartened by their continued loyalty as seen in our user engagement trends."

YHOO closed Tuesday's trading at $41.68, down $0.11 or 0.26%, on the Nasdaq. The stock however, gained $0.22 or 0.53% in the after-hours trade.