Yahoo! Inc. (YHOO) reported second-quarter 2009 results that surprised analysts' estimates by 2 cents a share. Adjusted earnings per share were 10 cents, compared to analysts' estimates of 8 cents.
It also surpassed the year-ago result by a penny. Net income rose 8% to $141 million from $131 million.
Revenue, however, declined 13% year over year to $1.573 billion from $1.798 billion. Currency rate fluctuations, the sale of Kelkoo in late 2008 and lower fees revenue from voice-over IP services and subscription music offerings effected total revenue in the quarter which otherwise would have declined just 6%.
Marketing services revenue from Owned and Operated sites fell 16% to $858 million from $1.016 billion in the second quarter of 2008. The decline was primarily due to the slide in search advertising revenue, which fell 15% from the year-ago period. Display advertising revenue also tumbled 14%.
The company saw its cash hoard increase in the last 6 months, with cash, cash equivalents and investments in marketable debt securities of $4.197 billion at the end of the quarter, compared to $3.522 billion as of Dec 31, 2008.
Yahoo expects revenue for the third quarter to be in the range of $1.45 billion to $1.55 billion.
