Yahoo Rallies As Quarterly Earnings Beat Wall Street's Expectations

Shares of Yahoo Inc. gained in Tuesday's extended session after the internet company posted better-than-expected results ahead of its merger with Verizon Communications Inc. . Yahoo reported its third-quarter earnings more than doubled to $163 million, or 17 cents a share, from $76 million, or 8 cents a share, a year earlier. On an adjusted basis, it would have earned 20 cents a share, beating Wall Street's estimate of 14 cents a share. Revenue increased to $1.31 billion from $1.23 billion, in part due to changes in how it reports revenue. Excluding the impact of the change, revenue would have fallen 15% to $1.05 billion versus analysts' forecast of $861 million. Revenue minus fees paid to partners for traffic, rose to $448 million versus $223 million but would have shrank 15% to $190 million under the previous accounting method. Yahoo shares rallied 1.3% after hours.