Yahoo Reports Earnings for the Last Time

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Yahoo! Inc. (NASDAQ: YHOO) reported first-quarter 2017 results late Monday after markets closed. The internet portal posted adjusted diluted earnings per share (EPS) of $0.18 on revenue of $1.33 billion. In the same period a year ago, Yahoo reported EPS of $0.08 on revenue of $1.09 billion. First-quarter results compare to the consensus estimates for EPS of $0.14 on revenue of $1.23 billion.

On a GAAP basis, Yahoo posted net earnings of $99 million compared with a net loss of $99 million in the year-ago quarter. Adjusted EBITDA rose from $147 million in the first quarter of 2016 to $188 million.

Search revenue increased from $492 million in the first quarter of 2016 to $745 million helped by an accounting change announced and implemented in the third quarter. Absent the change, search revenue fell by $304 million (10%). Display revenue fell 2% to $456 million in the quarter.

Yahoo CEO Marissa Mayer said:

Our Q1 performance reflects solid financial and operational execution in the new year, with more than $1.3 billion in GAAP revenue delivered. … As we enter our final quarter as an independent company, we are committed to finishing strong and planning for the best possible integration with Verizon. With the transaction anticipated to complete in June, I’ve never been more proud of the improvements we’ve made to the business and the value we’ve delivered to our shareholders.

Due to the pending transaction with Verizon, the company did not have an earnings call or webcast again this quarter.

Shares closed up about 0.4% in Tuesday’s regular session at $47.56 in a 52-week range of $35.05 to $47.74, and the high was posted today. In the after-hours session, the stock traded down about 0.2% at $47.46. The consensus 12-month price target on the stock was $48.76 before results were announced.