Q2 net profits: 3 cents per share under generally accepted accounting principles (GAAP)
After the close Wednesday, Yahoo said it earned $21.4 million, or 3 cents per share. Yahoo lost 9 cents last year. Analysts expected Yahoo to earn 2 cents per share.
Yahoo generated sales of $225.8 million, topping the consensus expectation of $215 million and narrowly topping the upper end of the range of $205 million to $225 million given in April. It was also up from the $182.17 million generated in the same period a year ago.
Yahoo! ended the second quarter with 1 million paying customers, primarily due to interest in Yahoo personals and additional Yahoo e-mail services, such as extra storage, said Chief Financial Officer Susan Decker on a conference call following the earnings release. The Internet access subscriber fees should be the leading contributor by the end of the third quarter, Decker added.
"We've turned the corner," said Yahoo CEO Terry Semel. "We'll have a chance to pass 2 million [paying customers] by the end of the year."
In the third quarter, Yahoo expects sales to be between $225 million and $250 million.
For the full year, Yahoo raised sales expectations by 3 percent at the high end to between $900 million and $940 million. In April, Yahoo said it expected to generate between $870 million and $910 million in sales.
Yahoo said it expects to generate cash flow of $140 million to $165 million. In April, Yahoo said that it expected cash flow to be between $105 million and $130 million for the full year