Yahoo shares were up roughly 3 percent at $15.98 in after hours trading on Tuesday.
Profit in Yahoo's third-quarter, the last quarter under Chief Executive Carol Bartz, who was fired in September, totaled $293 million, or 23 cents per share. In the year-ago period, Yahoo posted net income of $396 million, or $29 per share.
It was not immediately clear whether Yahoo's third-quarter EPS was comparable with the 17 cents a share expected by analysts polled by Thomson Reuters I/B/E/S.
Yahoo's net revenue -- which excludes fees paid to partner websites -- was $1.07 billion, compared with $1.12 billion at this time last year, and in line with Wall Street expectations.
Yahoo, which has appointed Finance Chief Tim Morse as interim CEO, has retained investment banking firm Allen & Co to help it conduct a "strategic review" of its business.
(Reporting by Alexei Oreskovic; editing by Andre Grenon)