Amazon sales rise, but profit comes up short
Amazon sales rise, but profit comes up short - Apr. 26, 2011
Amazon's stock fell 5.7% in after-hours trading Tuesday after the company reported first-quarter earnings that fell by one-third compared to a year earlier -- and sharply missed Wall Street forecasts.
After the bell Tuesday, Amazon (AMZN
, Fortune 500
) reported that its net income in the first quarter fell to $201 million, or 44 cents a share, compared to last year's $299 million. Analysts polled by Thomson Reuters were looking for earnings of 61 cents a share.
Amazon's sales during the quarter rose 38% to $9.9 billion, beating analysts' estimates of $9.5 billion.
Shares fell nearly 6% after hours as investors were rattled by the earnings miss, but they had recovered a bit, to a 2% loss, by 6 pm. ET. Amazon shares have been sluggish in 2011, rising only 1.3% year-to-date as of Tuesday's close, even as the broader market has rallied
Investors also looked to a partially downbeat forecast for the second quarter. Amazon expects sales of $8.9 billion to $9.7 billion, but it expects its operating income to decline.
Amazon one of the biggest online retailer expect its operating income to decline?
What a pessimistic perspective...