Yahoo Shares Rise Sharply on Q3 Results (YHOO)

Shares of Yahoo Inc. (NASDAQ: YHOO) have risen sharply in trading today after the Sunnyvale, California-based Internet company reported results for the third quarter ended Sep 30, 2012.

YHOO’s consolidated revenue for the third quarter fell 1% to $1,201.73 from $1,216.67 million reported for the same period in the previous year. The company’s GAAP income from operations fell 14% to $152.19 million from that of $177.25 million reported for the same period in the previous year. On a non-GAAP basis, the company’s operating income for the quarter was $177 million, up from $175 million reported for the same period in the previous year.

Though YHOO’s revenues from Display service and Search service rose by 1% each, the increase was offset by 10% decrease in the revenues from Others. Total Revenues excluding TAC (Traffic Acquisition Costs) had increased by 2% to $1,088.9 million from $1,071.67 million.

Net Income increased drastically by 978%. This was mainly due to a gain of $4,603.32 million from the sale of Alibaba shares. Excluding the gain from Alibaba, related restructuring expenses and tax provision, YHOO reported non-GAAP net income of $420.68 million, or $0.35 per share.

Marissa Mayer, CEO of Yahoo, said that the company had a solid quarter, and is encouraged by the stabilization in search and display revenue. Mayer also said that the company is taking important steps to position itself for long-term success. Mayer added that she is confident that YHOO’s focus on quality and improving the user experience will drive increased value for its advertisers, partners and shareholders.

At the end of Sep 30, 2012, YHOO had total assets of $20,414.13 million, including $7,560.4 million worth of cash and its equivalents. Total liabilities were $4,808.61 million, among which 73% were current. Total stockholders’ equity was $15,605.52 million.

YHOO shares rose to a 52-week high of $16.75 today. At last check, the stock was trading 5.77% higher at $16.68, with volume up from its daily average of 20.47 million to 47.73 million.