Mixed fortunes for Yahoo

YAHOO has said an important partnership with Microsoft is taking longer than expected to pay off, but the company posted quarterly earnings that topped Wall Street targets, sending shares up in after-hours trading.

The mixed progress report comes as expectations for the web portal remain low two years into chief executive Carol Bartz’s effort to revive growth at the company.

“Clearly there is some improvement in the business here, both from a topline perspective and a margin perspective,” said Pacific Crest Securities analyst Steve Weinstein.