Reports first quarter earnings; results in line with analysts’ expectations
April 20, 2016: Yahoo on Tuesday announced its first quarter earnings which were better than what Wall Street had estimated. The company posted adjusted first quarter earnings per share of 8 cents, compared to 15 cents per share in previous year. Gross revenue for the quarter also fell year-over-year, coming in at $1.09 billion, compared to $1.23 billion during the same period last year.
The company’s shares rose by almost 1 per cent to $36.66 in light volumes in extended trading on Tuesday. Addressing the media, Yahoo CEO Marissa Mayer did not give much detail on bidding. She said the company has made “substantial progress towards potential strategic alternatives for Yahoo”.
“Our board, our management team, and I are completely aligned on this top priority for shareholders,” she said. According to The Wall Street Journal, most of the bids came in the range of between $4 billion and $8 billion.
Yahoo said that its board has “formed a strategic review committee of independent directors to consider strategic alternatives for the company alongside its continued consideration of a reverse spin.”
“Since the launch of the process in February, management has worked diligently with the committee and its independent legal and financial advisors to engage with interested strategic and financial parties,” Yahoo said in its Tuesday release.