The company reported pro forma net income of US$40.4 million, or 14 cents a share, excluding merger and amortization costs for the period ending September 30. For the same period a year ago it reported earnings of US$6.9 million, or 2 cents a share.
Analysts had expected earnings of 9 cents a share, according to First Call.
Including merger-related and amortization costs, Yahoo posted net profits of US$14.9 million, or 5 cents a share, for the quarter just ended. Wall Street, however, excludes such costs when establishing estimates.
Revenues reached US$155 million for the period, compared with US$66.3 million a year ago. Some analysts had expected Yahoo to report revenues of US$139 million for the quarter.
Yahoo's registered user base grew to 80 million, compared with 65 million in June. During September, the number of unique users rose to 105 million, compared with 80 million in June.
The company also reported that average daily page views in September reached 385 million for its network, compared with 310 million in June. Figures were not immediately available on the number of page views that came from Yahoo's standalone site.
Last quarter, despite reporting better than expected earnings, Yahoo's stock took a slight hit over Wall Street's concern the company's average daily page view growth was slowing.
Yahoo stock closed at 175.75, up 2.44. Yahoo reported earnings after the stock markets closed. In after-hours trading, however, the shares were trading at about 184.
Although Yahoo once served as a bellwether for all Internet stocks, that's not necessarily the case today.
"We have seen more stratification in Internet stocks over the last year," said Andrea Williams, an analyst with E*Offering. "We no longer see all ad-based revenue stocks do well if Yahoo does well. But if Yahoo doesn't do well, all Internet stocks get hurt. It seems Yahoo only affects stocks one way but not both ways."
She noted, however, that Lycos, AOL, Infoseek, About.com, and LookSmart may be the exception and could see their share prices rise if investors are pleased with Yahoo's earnings.
Although Yahoo's shares are down from their 52-week high of 244 in April, an analyst with CIBC Oppenheimer has a 12-month price target of 200 for the stock.
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