Yahoo, led by Marissa Mayer, Tops Estimates While Focus Turns to Sale Process
Verizon, private equity-firm TPG and YP Holdings LLC were among the first round of bidders for the Yahoo’s Internet operations, say sources
Yahoo! Inc. (Nasdaq: YHOO) posted first-quarter revenue that topped estimates, signaling potential progress in Chief Executive Officer Marissa Mayer’s turnaround amid a process to sell the company’s core operations. Yahoo recently hired advisers to explore its options.
Revenue, excluding sales shared with partner websites, declined 18 percent to $859.4 million, the Sunnyvale, California-based company said Tuesday in a statement. That exceeded analysts’ average projection of $846.5 million, according to data compiled by Bloomberg.
While Mayer may be able to tout progress in her effort to revive the Web portal, investors are turning their focus to a process under way that may lead to a sale. On Monday, Verizon Communications Inc., private equity-firm TPG and YP Holdings LLC were among the first round of bidders for the company’s Internet operations, according to people familiar with the matter.
“While we remain focused on the strategic alternatives process as a top priority, our employees showed their determination and commitment to Yahoo by executing on our operating plan,” Chief Financial Officer Ken Goldman said in the statement.
The company reported a loss attributable to Yahoo of $99.2 million in the first quarter, compared with a profit of $21.2 million a year earlier. Profit, excluding some costs, was 8 cents a share, compared with the analysts’ average estimate of 8 cents.
“Nobody cares about fundamentals at this point,” said Sameet Sinha, an analyst at B. Riley & Co. “Everyone is just saying sell the company -- just get it over with.”
Shares of Yahoo rose about 1 percent in extended trading. The stock declined less than 1 percent to $36.33 at the close Tuesday in New York and has climbed 9.2 percent this year.
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