Yahoo declines as sales forecast falls below analysts' estimates

San Francisco

YAHOO! INC declined in extended trading after forecasting sales in the current quarter below analysts' estimates, a sign that CEO Marissa Mayer's turnaround effort is still a work in progress.

Yahoo expects third-quarter revenue, excluding sales shared with partner websites, of US$1 billion to US$1.04 billion, the company said on Tuesday. That compares with the US$1.07 billion average of analysts' estimates compiled by Bloomberg. The shares fell as much as 3.3 per cent in extended trading after increasing less than 1 per cent to US$39.73 at the close on Tuesday in New York.