Yahoo Profit Tops Street, To Focus On Sale

(RTTNews) - Yahoo! Inc. (YHOO) on Tuesday reported a loss for the first quarter, hurt largely by lower revenues. Nevertheless, Yahoo's adjusted earnings trumped Wall Street estimates by a penny. Meanwhile, the company said its "top priority" remains a corporate sale.

Sunnyvale, California-based Yahoo reported a first-quarter loss of $99 million or $0.10 per share, compared with profit of $21 million or $0.02 per share last year.

On an adjusted basis, earnings dropped to $0.08 per share from $0.15 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.07 per share.

Yahoo's revenue's for the quarter dropped to $1.09 billion from $1.23 billion last year. Analysts had a consensus revenue estimate of $1.08 billion.

Traffic-acquisition costs rose to $228 million from $183 million last year.

"Our 2016 plan is off to a solid start as we continue to focus on driving efficiency, lowering costs, and improving long-term growth," said CEO Marissa Mayer.

Yahoo under Marissa Mayer has been struggling for last few years to win the back the market share it lost to Internet giants like Facebook and Google.

In February, the struggling internet behemoth started seeking bids for its core web businesses, which include its search and media content operations.

"We remain focused on the strategic alternatives process as a top priority...," said CFO Ken Goldman.

According to reports, bidders for Yahoo's business include Verizon, private equity firm TPG, Yellow Pages parent YP Holdings, and Bain Capital. Yahoo had set Monday as the deadline for preliminary bids.

Looking forward to the second quarter, Yahoo expects revenue of $1.05 billion to $1.09 billion, compared to analysts current estimate of $1.10 billion.

For the full year, the company expects revenues of $4.40 to $4.60 billion, in line with consensus estimate of $4.52 billion.

YHOO closed Tuesday's trading at $36.33, down $0.19 or 0.52%, on the Nasdaq. The stock further however, rose $0.56 or 1.54% in the after-hours trade.