Internet giant Yahoo Inc. (YHOO)'s third-quarter profit nearly quadrupled, reflecting a continued boom in online advertising.
The Sunnyvale, Calif.-based company said Tuesday that it earned $253.3 million, or 17 cents per share, for the three months ended in September, up from net income of $65.3 million, or 5 cents per share, at the same time last year.
The third-quarter profit included a windfall that Yahoo realized from selling part of its stake in rival Google Inc. (GOOG), which completed a closely followed initial public offering in August. If not for the Google gain and a tax benefit, Yahoo said it would have earned 9 cents per share, matching the consensus estimate of analysts surveyed by Thomson First Call.
Revenue for the period totaled $906.7 million, a dramatic increase from $356.8 million last year. Yahoo's revenue fell to $655 million after subtracting commission paid to some of its advertising partners. The revenue, minus advertising commission, was slightly above analyst expectations.
Yahoo released its results after the stock market closed. Yahoo's shares gained 21 cents to close at $34.23 on the Nasdaq Stock Market (search), then climbed another 25 cents in extended trading.
"Yahoo began to demonstrate the next stage in the company's evolution in the third quarter," said Chairman Terry Semel (search), who has engineered a resounding comeback from the dot-com bust during his three-year tenure.