SHARES in Yahoo fell yesterday a day after it reported fourth quarter revenue that topped analysts' estimates.
The results, which took Wall Street by surprise, saw the internet portal increase sales for the first time since 2008 in what was seen as vindication for the strategy of the new chief executive Marissa Mayer.
Fourth-quarter earnings, excluding some items, were 32 cents a share, while revenue excluding sales passed to partner sites, rose 4pc to $1.22bn (€906m). Analysts had projected profit of 28 cents on revenue of $1.21bn. The results are a huge boost to the firm, which employs more than 200 people in Ireland and is looking to expand its operations here.
Ms Mayer, a long-time Google executive before taking the Yahoo position last year, said she expects to build on the last quarter's gains by getting users to spend more time on a dozen popular sites, including mail and Yahoo Finance.
Still, forecasts for this quarter and the full year that fell short of analysts' predictions underscore the challenge Mayer faces in display advertising, an area where Yahoo lags behind Google and Facebook.
By mid-afternoon in New York the shares were off 2.8pc at $19.73. (Additional reporting by Bloomberg)