http://www.nytimes.com/2014/10/22/technology/yahoo-revenue-and-profit-surpass-estimates.html 2014-10-21 23:16:45 Yahoo Revenue and Profit Surpass Estimates Strong third-quarter results at Yahoo ended a long pattern of declines. === SAN FRANCISCO — Marissa Mayer finally has something to crow about. Yahoo Mobile, long a bête noire for the company, has for the first time contributed meaningfully to its results. In The company’s stock rose 2 percent in after-hours trading after release of the numbers. Yahoo posted revenue of $1.15 billion for the quarter, an increase of 1 percent from the period a year earlier. It beat Wall Street’s projection of $1.05 billion. Net income was $6.78 billion, or $6.70 a share, ballooned by an after-tax profit of $6.3 billion from Yahoo’s sale of a stake in the Alibaba Group as part of the Chinese company’s initial public offering in September. Excluding one-time gains and stock compensation expenses, the company earned 52 cents a share, compared with the 30 cents a share that analysts had expected. In the third quarter last year, Yahoo posted revenue of $1.14 billion, net income of $297 million, and adjusted earnings of 34 cents a share. While the company’s underlying results were strong, for many investors, the figures are almost beside the point. Shareholders are itching for more clarity on Ms. Mayer’s strategy for turning around the aging Internet company and using the Alibaba proceeds. In recent years, Wall Street has placed little value on Yahoo’s core business of selling advertising on its websites and mobile apps. Yahoo, which published the leading directory to the Internet before Google even existed, has been declining for years, a trend that has been slowed but not definitively reversed by Ms. Mayer during her two-year tenure. Although Yahoo’s pages still draw tremendous traffic, it is losing ground to Google and Facebook in advertising. The research firm eMarketer projects that Yahoo’s global market share of digital advertising will drop to 2.4 percent this year, down from 2.9 percent in 2013, as the company’s display and search advertising slips further. Yahoo’s stock, which closed at $40.18 in regular trading on Tuesday, has largely been driven by the value of the company’s stakes in Alibaba and Yahoo Japan, which are currently worth about $43 billion, or $42 a share, before taxes. Last month, the hedge fund Starboard Value, which said it owned a substantial stake in Yahoo, Speaking at a tech conference in London on Monday Ms. Mayer is expected to discuss her company’s acquisition strategy in a webcast with investors and analysts late Tuesday afternoon.