Yahoo Stock Drops With Cloudy Outlook

Healthy earnings couldn't persuade investors company's future is bright

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Peter Kramer / NBC / Getty Images

Yahoo’s earnings beat Wall Street expectations, but shares slipped in after-hours trading on a poor market forecast.

The company posted earnings of 46 cents a share, beating estimates of 38 cents a share for the quarter, as income for the year 2013 was $590 million, up 4% from 2012′s total. But shares dropped after the earnings announcement, which included a forecast net income of between $130 million and $170 million for the current quarter, well below the forecasts.

Yahoo saw a share price drop of about 3 percent by around 4:45 p.m. Tuesday, and the company also announced 6 percent decline in full-year 2013 revenue to $4.68 billion.

The company launched the new Yahoo Mail, Yahoo Finance, and Flickr photo books during the quarter and saw year-over-year traffic increase in 2013, a development CEO Marissa Mayer attributed to a “return on our investments and the acquisitions we’ve made.”