USA Today
Yahoo reported lackluster results Tuesday that extended its four-year financial slowdown and could intensify pressure on CEO Carol Bartz.
Third-quarter revenue inched up 2% — to $1.6 billion — from the same quarter a year ago. Google, by comparison, reported a 23% increase this month.
Yahoo's profit of $396 million, or 29 cents per share, was more than double last year's result. However, a big part of the gain came from its sale of HotJobs.
"We have been working hard to create a stronger and more efficient company," Bartz said in a conference call.
Yahoo reported after markets closed. Its stock was up 1%, at $15.65, in extended trading. The sluggish results underscore ongoing challenges at Yahoo, which has been bruised by stiff competition from Google and Facebook, shrinking market share and stagnant business despite a nearly two-year turnaround plan.
Yahoo's current state — compounded by a recent spate of executive defections — has prompted skepticism about Bartz's strategy and whether anyone can reverse Yahoo's flagging fortunes.
"This is a systemic problem in terms of trying to regenerate growth at the company, period," says Martin Pyykkonen, an analyst at Wedge Partners.
Indeed, Yahoo offered a conservative forecast for the holiday shopping season. It expects $1.13 billion to $1.23 billion in revenue — shy of the average analyst estimate of $1.26 billion.
Bartz has said that it would take several years to revive Yahoo. Whether the company's board and shareholders have the patience may be another matter.
Yahoo is refocusing its efforts on e-mail, instant messaging and creating news content. The company, with 600 million worldwide users a month, also is pushing a social-networking strategy.
Third-quarter revenue inched up 2% — to $1.6 billion — from the same quarter a year ago. Google, by comparison, reported a 23% increase this month.
Yahoo's profit of $396 million, or 29 cents per share, was more than double last year's result. However, a big part of the gain came from its sale of HotJobs.
"We have been working hard to create a stronger and more efficient company," Bartz said in a conference call.
Yahoo reported after markets closed. Its stock was up 1%, at $15.65, in extended trading. The sluggish results underscore ongoing challenges at Yahoo, which has been bruised by stiff competition from Google and Facebook, shrinking market share and stagnant business despite a nearly two-year turnaround plan.
Yahoo's current state — compounded by a recent spate of executive defections — has prompted skepticism about Bartz's strategy and whether anyone can reverse Yahoo's flagging fortunes.
"This is a systemic problem in terms of trying to regenerate growth at the company, period," says Martin Pyykkonen, an analyst at Wedge Partners.
Indeed, Yahoo offered a conservative forecast for the holiday shopping season. It expects $1.13 billion to $1.23 billion in revenue — shy of the average analyst estimate of $1.26 billion.
Bartz has said that it would take several years to revive Yahoo. Whether the company's board and shareholders have the patience may be another matter.
Yahoo is refocusing its efforts on e-mail, instant messaging and creating news content. The company, with 600 million worldwide users a month, also is pushing a social-networking strategy.
