INSTANT VIEW: Yahoo profit beats estimates

SAN FRANCISCO (Reuters) - Yahoo Inc (YHOO.O) posted a better-than-expected quarterly profit on Tuesday as it sought to convince investors that Microsoft Corp (MSFT.O) needs to pay more to buy the company.

COMMENTARY:

JEFFREY LINDSAY, ANALYST, SANFORD C. BERNSTEIN & CO

"This is better than the Street was expecting. This might pose some issues for Microsoft. It's less likely Microsoft would succeed with a lower bid. They wouldn't be able to reduce their price."

MARK MOWREY, SENIOR ANALYST, AL FRANK ASSET MANAGEMENT, LAGUNA BEACH, CALIFORNIA:

"We're not really impressed with this quarter. The company has been very innovative in the Web space but they haven't been able to turn that innovation into the kind of top-line growth you would expect to see compared to what Google is doing. We certainly do not think a Yahoo-Microsoft combination would solve the problem."

JIM FRIEDLAND, ANALYST, COWEN & CO

"Microsoft is breathing a sigh of relief. Even though these are solid results, given long and short term challenges, there's been no overall shift in Yahoo's business. Microsoft's offer is still the best offer on the table ... Could it modestly raise what it's willing to pay to just get the deal done? Yes. There's nothing in the results that would make Microsoft reassess its bid and raise it significantly. The trends are still the trends."

MIKE BINGER, FUND MANAGER AT THRIVENT FINANCIAL IN MINNEAPOLIS, OWNS MICROSOFT AND YAHOO SHARES

"First-quarter earnings look good, kind of in-line, maybe a little better on margins."

"But there is some guidance out there that I don't have any explanation for, way ahead of estimates."

"The only thing they've said is long-term investments are beginning to pay off. It's surprising that they can raise their next-quarter guidance so much. I would say at this point Microsoft would stay their bid."

RYAN DETRICK, SENIOR TECHNICAL STRATEGIST, SCHAEFFER'S INVESTMENT RESEARCH, CINCINNATI, OHIO

"From a fundamental point of view, the news looks pretty positive, but until the uncertainty of the company's potential buyout by Microsoft is lifted we really don't see the stock moving too significantly either up or down.

"On the flipside, if the earnings are really good that could increase what Microsoft is anticipating to pay for Yahoo."

SANDEEP AGGARWAL, ANALYST, COLLINS STEWART LLC