Yahoo! (YHOO) Earnings Beat the Street, But Shares Falling

Yahoo! (Nasdaq: YHOO) shares are selling-off about 3.8% following its Q2 earnings report, which was issued after the close today. The search-giant reported quarterly non-GAAP EPS of $0.16, flat from the same quarter last year and about 8 cents better than what the Street had been looking for. Sales, meanwhile, came in down 13% to $1.57 billion. On an ex-TAC (traffic acquisition cost) basis, sales were $1.14 billion, which was inline with the Street's estimate.

Yahoo! also issued Q3 GAAP sales guidance of $1.45-$1.55 billion, with income from operations in the range of $55-$65 million.

On the conference call, Yahoo!'s CEO Carol Bartz has made some interesting comments:

• sees less fear in the market place
  
• advertisers are planning on spending more actively
  
• related to advertising, Yahoo! sees the auto-market showing signs of stability

UPDATE: Click here to see some highlights from the company's Q2 conference call.

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