Yahoo’s earnings rise 46%, revenue sinks
SAN FRANCISCO — Yahoo’s second-quarter results didn’t give investors a reason to celebrate the completion of CEO Marissa Mayer’s first year running the Internet company.
The numbers released Tuesday showed Yahoo Inc.’s earnings are still rising, but they also highlighted the challenges facing the Sunnyvale, Calif. company as it loses ground to rivals Google Inc. and Facebook Inc. in the online advertising market that generates most of their revenue.
Wall Street focused on Yahoo’s revenue problems instead of its earnings gains. The company’s stock dipped 48 cents, or nearly 2 percent, to $26.45 in extended trading after the report came out.
Despite that downturn, Yahoo’s shares have surged nearly 70 percent since Mayer defected from a top job at Google to attempt a turnaround at one of the Internet’s best-known brands.
Homebuilders’ confidence, sales outlook soar
U.S. homebuilders are feeling more optimistic about their home sales prospects than they have in more than seven years, a trend that suggests home construction will accelerate in coming months.
The National Association of Home Builders/Wells Fargo builder sentiment index released Tuesday jumped to 57 this month from 51 in June. It was the third consecutive monthly gain.
A reading above 50 indicates more builders view sales conditions as good, rather than poor. The index hasn’t been that high since January 2006, well before the housing market crashed.
Measures of customer traffic, current sales conditions and builders’ outlook for single-family home sales over the next six months vaulted to their highest levels in at least seven years.
The latest confidence index, based on responses from 281 builders, points to continued improvement for new home construction, which remains a key source of growth for the economy.
Bad weather complicates Coca-Cola’s struggles
Coca-Cola is struggling to sell more soda in the U.S., and it can’t seem to catch a break.
The world’s largest beverage maker on Tuesday blamed a confluence of factors including unusually bad weather for its disappointing second-quarter results. The company’s profit declined 4 percent.
The temporary setbacks clouded the underlying challenge the company faces in North America and other developed markets, where soda consumption has been declining for years amid criticism that sugary drinks fuel obesity rates.
In the latest quarter, for example, Coca-Cola said soda volume in North America fell 4 percent. But the figure has declined in 20 of the 26 quarters since the start of 2007, including a 2 percent slide a year ago. It was flat in four quarters and rose by just 1 percent in the other two quarters.