Internet media company Yahoo said today its quarterly net profit more than doubled, but the stock fell as some investors got less than they had hoped for.
Even though Yahoo met Wall Street expectations for the second quarter and raised its financial forecast for the year, its shares fell 4 per cent in after-hours trade.
Much has been made of recent strength in Yahoo's online advertising and its fee-based services, analysts said. The company reported a net profit of $50.8 million, or 8 cents per share, for the second quarter, compared with a year-earlier profit of $21.4 million, or 3 cents per share.
Revenue increased to $321.4 million from $225.8 million a year earlier.
The company's biggest segment, marketing services, saw revenue grow to $219.2 million from $151.7 million a year earlier. Marketing services includes the company's sponsored search business, a major area of growth in Internet advertising.
Yahoo said it now expects revenue of $318 million to $338 million for the third quarter, with operating income before depreciation and amortization of $94 million to $104 million.
For the year, it expects revenue of $1.26 billion to $1.31 billion with operating income before depreciation and amortization of $375 million and $400 million.
Analysts had expected revenue of $325.5 million for the third quarter and $1.28 billion for the year, according to Reuters Research.
Yahoo shares fell in after-hours trade, dropping about 4 per cent to $33.87 on Instinet from a close of $35.29 on Nasdaq.
Deutsche Bank analyst Mr Jeetil Patel, who has a hold on the stock, said investors may have expected an even higher profit jump.