* Q3 net rev $1.07 bln vs Street's $1.07 bln
* Q3 EPS 23 cents
* Sees Q4 net rev $1.125 bln to $1.235 bln
* Shares up after hours
SAN FRANCISCO, Oct 18 Yahoo Inc
managed to meet all its quarterly earnings targets in the third
quarter, even as it fielded offers from potential buyers and
searched for a new chief executive.
Yahoo, which fired former CEO Carol Bartz in early
September before the end of the third quarter, posted slight
decreases in net revenue and profit, but those declines were
Yahoo shares gained roughly 3 percent to $15.98 in after
hours trading on Tuesday.
Profit in the third-quarter totaled $293 million, or 23
cents per share, compared with net income of $396 million, or
$29 per share, in the year-ago period. It was not immediately
clear whether Yahoo's third-quarter EPS was comparable with the
17 cents a share expected by analysts polled by Thomson Reuters
Yahoo's net revenue -- which excludes fees paid to partner
websites -- was $1.07 billion, compared with $1.12 billion at
this time last year, and in line with Wall Street
The Sunnyvale, Ca-based Internet icon, which has struggled
to revive its online advertising business, said it agreed to
extend the revenue per search guarantee in its deal with
Microsoft Corp through March 2013. The extension
applies only to the United States and Canada, however.
Yahoo said it remains fully committed to the success of the
search alliance and that the extension represents an "important
sign of that commitment."
Microsoft, which offered to acquire Yahoo for $47.5 billion
a few years ago, is weighing making another run at buying the
company, either by itself or in partnership with others.
In an interview with Reuters, Yahoo interim-CEO Tim Morse
said premium display advertising sales were on target for the
third quarter, but that non-premium ad sales has a bit of an
"underrun." Morse added that, on a year-over-year basis premium
display, ads sales were up less than 5 percent and non-premium
ad sales were down by a similar amount.
Morse declined to provide an update on Yahoo's CEO search,
saying only that "the board process was underway."
The company has retained investment banking firm Allen & Co
to help conduct a "strategic review" of its business.
For the fourth-quarter, Yahoo projected net revenue of
$1.125 billion to $1.235 billion, compared with $1.22 billion
expected by analysts.