Amazon Slides After Q3 Earnings
Shares of e-commerce giant Amazon.com (NASDAQ: AMZN) in Thursday's after-hours session after the company reported a wider-than-expected third-quarter loss.
Amazon reported a net loss of $274 million or $0.60 per share, compared to net income of $63 million or $0.14 per share, in the year ago period. The results for the period included a $169 million loss, or $0.37 per share, which was related to an impairment charge. Heading into the report, Wall Street analysts had consensus EPS estimates call for a loss of $0.08.
Net sales in the quarter were up 27 percent to $13.81 billion versus $10.88 billion in the year ago period. This missed Wall Street consensus revenue estimates of $13.92 billion. On a constant currency basis, net sales rose 30 percent versus the year earlier quarter.
For the fourth quarter, Amazon said that it expects sales of between $20.25 billion to $22.75 billion. This implies a year over year growth rate between 16 percent and 31 percent. Currently, analysts are projecting that Amazon will report revenues of $22.79 billion in the fourth quarter.
The company also guided for an operating loss of $490 million and a profit of $310 million in the fourth quarter. During the regular trading session, AMZN fell 0.41 percent and closed at $227.55. Although the Q3 numbers do not look terribly strong Amazon has a reputation for actually rising the day after a less than stellar earnings report. In fact, it now looks as if the stock could turn positive in the after hours trading session.
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