Yahoo post 11% profit drop in Q1

Yahoo's first-quarter profit fell 11%, disappointing investors who have been betting that the Internet icon had regained its stride after stumbling through much of last year, an Associated Press report said.

The Associated Press report said the letdown zapped Yahoo's stock, which plummeted more than 8% after the results were released.

Management added to the angst by leaving its financial outlook for the remainder of the year unchanged from its last forecast three months ago, the report said.

The report said the company earned $142.4 million during the three months ended in March. That compared with net income of $159.9 million at the same last year.

The results were a penny below the average earnings estimate among analysts surveyed by Thomson Financial, the report said.

Revenue for the period rose 7% to $1.67 billion, it added.

After subtracting advertising commissions, Yahoo's revenue totaled $1.18 billion. That figure fell about $25 million shy of the average analyst projection, according to Thomson Financial, the report said.

The Associated Press report said the first-quarter downturn may renew concerns about Yahoo's ability to compete against Google, whose Internet-leading search engine propels the Web's most lucrative advertising network.