Los Angeles, Oct. 9 (Reuters): Internet media company Yahoo Inc. on Wednesday posted a profit more than double last year and raised its annual earnings guidance, sparked by a red hot web advertising market and its recent acquisition of Overture Services.
Shares in Yahoo were up just over 1 per cent at $39.31 in after-hours on Instinet, following the financial community’s initial enthusiastic reaction.
“I think it was just an awesome result,” said Safa Rashtchy, an analyst at US Bancorp Piper Jaffray.
Sunnyvale, California-based Yahoo reported a net profit for the third quarter of $65.3 million, or 10 cents a share, compared with a year-earlier profit of $28.9 million, or 5 cents a share. Revenue rose to $356.8 million from $248.8 million last year.
Financial analysts’ average estimates called for earnings per share of 9 cents on revenue of $337.2 million, according to Reuters Research, a unit of Reuters Group Plc.
Revenue in marketing services, the company’s widely watched division responsible for advertising and sponsored search services, rose 48 per cent from last year to $245.1 million.
“It was a very good quarter and illustrative of the fact that the online advertising business is thriving right now,” said Derek Brown, of Pacific Growth Equities.