Yahoo's third-quarter profit slipped less than analysts feared, raising hopes that the slumping Internet powerhouse can deliver on the comeback promises of a new management team that took over four months ago, an Associated Press report said.
The Associated Press report quoted the company as saying that it earned $151.3 million during the three months ended in September.
That was 5% less than its net income of $158.5 million in the same period last year, the company said.
The earnings were $0.11 per share in both periods because Yahoo bought back some of its stock in an attempt to bolster its eroding market value, the report said.
The report added that analysts had low expectations after Yahoo struggled through the first half of the year in spite of an online advertising boom. The company's third-quarter results exceeded the average earnings estimate among analysts surveyed by Thomson Financial.
Revenue for the period totaled $1.77 billion, a 12% improvement from last year.
After subtracting commissions paid to Yahoo's advertising partners, revenue stood at $1.28 billion, nearly $40 million above the average analyst estimate, according to Thomson Financial.
Investors cheered the news, released after the stock market closed. Yahoo's stock price surged $2.56, or 9.7%, in extended trading, the report said.