Yahoo Earnings Miss Expectations, Google Search Deal Announced

Yahoo Inc. shares were volatile in Tuesday's extended trade after the web portal company reported quarterly results that missed Wall Street's expectations. Yahoo said its third-quarter earnings fell to $76 million, or 8 cents a share, from $6.77 billion, or $6.70 a share, a year ago. On an adjusted basis, the company would have earned 15 cents a share, falling short of 16 cents a share forecast by analysts in a FactSet survey. Year-earlier results were inflated by Alibaba Group Holding Ltd.'s initial public offering. Revenue grew to $1.23 billion from $1.15 billion with mobile revenue accounting for 24% of traffic-driven revenue in the quarter. Yahoo also announced a search agreement with Google that would complement its existing deal with Microsoft Corp. . Meanwhile, Chief Executive Marissa Mayer said the spinoff of Aabaco Holdings is a top priority. "This is an important moment for the company, and we continue to strive to complete the spin as quickly as we can," she said in a statement. Yahoo shares fell 1.3% in after-hours trading.