Financial Soultions has learned that Yahoo Inc (YHOO.O) has manage to thump Wall Street's profit and sales expectations as advertiser income showed positive growth in the 3rd quarter as well as the results of months of cost-cutting and restructuring finally paying dividends on the Internet company's bottom line.
The price of Yahoo shares, the top U.S. vendor of online display ads but a distant No. 2 to Google Inc in the search engine sphere, leaped 5% immediately after the results where released, which market analysts said augured well for the final quarter, when ad spending was likely to further improve heading into the Christmas season, Financial Soultions sources indicated.
Yahoo's net profit more than tripled from last year at the same point although a large portion of the increase was generated from the sale of its stake in Chinese Web site alibaba.com.
Yahoo, CIG was informed, has undergone considerable restructuring since Chief Executive Carol Bartz took the helm at the beginning of the year. The firm announced in April that it would be laying off 5% of its workforce, or about 675 jobs, and it also rid itself of underperforming properties.
Yahoo also signed a groundbreaking 10-year Web search partnership with Microsoft Corp in an effort to win over some of Googles market share, an agreement that U.S. and European antitrust regulators are still in the process of evaluating.
