Yahoo! Inc. (Nasdaq:YHOO) posted better-than-expected quarterly earnings and revenue, sending its shares 2.20 percent higher in extended trading.
Net earnings increased to $286 million or $0.23 per share for the first quarter from $223 million or $0.17 per share in the year-ago quarter.
Revenue, excluding traffic acquisition costs (TAC), rose 1 percent to $1.08 billion. Excluding TAC, display revenue dropped 4 percent, while search revenue rose 8 percent.
Analysts, on average, polled by Thomson Reuters expected earnings of $0.17 per share on revenue of $1.06 billion.
Total operating expenses fell 2.6 percent to $1.02 billion.
Looking ahead for the second quarter, the struggling internet company expects revenue excluding TAC between $1.03 billion and $1.14 billion, versus Wall Street projections of $1.08 billion.
Just ahead of the first quarter results, new CEO Scott Thomson unveiled plans of revamping the company and announced his intention to show exit doors to 14 percent of its workforce. The company has been losing its search engine share and has now been relegated to the third slot allowing Microsoft (Nasdaq: MSFT) to overtake it.
The stock, which has been trading between $11.09 and $18.84 over the past year, ended Tuesday's regular trading at $15.01.