Amazon 4Q earnings grow but miss expectations

Jan 30 2014, 6:52pm CST | by

Amazon posts higher 4th-quarter earnings, revenue but falls short of expectations, shares fall

SEATTLE (AP) — Amazon's profit and revenue both grew in the latest quarter but its results fell below what Wall Street was expecting and shares of the world's biggest online retailer declined after-hours.

Amazon has long focused on spending the money it makes to grow its business and expand into new areas, from movie streaming to e-readers and even grocery delivery.

Investors have largely forgiven thin profit margins and zeroed in on the company's solid revenue growth and long-term prospects. It's posted losses in two previous quarters due to rising operating costs but the stock hit an all-time high of $408.06 last week.

However, Thursday's disappointing results and modest revenue forecast for the current quarter sent shares tumbling up to 10 percent after the closing bell. In recent aftermarket trading, shares of the Seattle-based company were down $20.91, or 5.2 percent, to $382.10.

Amazon.com Inc. also said it is considering a $20 to $40 price hike on its popular Prime service, which currently costs $79 a year in the U.S. and offers free two-day shipping on most items. The company said it has not raised the price on Prime in the 9 years since its launch, even though shipping costs have increased and it has added new services, such as video streaming.

Amazon earned $239 million, or 51 cents per share, in the October-December period, which included the key holiday shopping period. That's up from $97 million, or 21 cents per share, in the same period a year earlier.

Revenue grew 20 percent in the fourth quarter, to $25.59 billion from $21.27 billion.

Analysts were expecting earnings of 74 cents per share on revenue of $26.05 billion, according to FactSet.

For the current quarter, Amazon is forecasting revenue of $18.2 billion and $19.9 billion. The midpoint of that range is below analysts' $19.67 billion estimate.

Source: AP Business

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Associated Press</a>
The Associated Press (AP) is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers.

 

blog comments powered by Disqus

Latest stories

Need for Speed Reboot is Coming This Fall
Need for Speed Reboot is Coming This Fall
EA will release a complete new Need for Speed this fall. The video game giant just released a teaser video and the first Need for Speed Gameplay video will be revealed in June.
 
 
Google Self-Driving Cars to Hit Public Roads this Summer
Google Self-Driving Cars to Hit Public Roads this Summer
Google announced today that Google Car prototype vehicles will leave the test track and hit the familiar roads of Mountain View.
 
 
Google Search Analytics Launched in Web Master Tools
Google Search Analytics Launched in Web Master Tools
Google officially announced the new Search Analytics feature in Webmaster tools.
 
 
T-Mobile Hits Verizon with new 'Never Settle Trial' Campaign
T-Mobile Hits Verizon with new 'Never Settle Trial' Campaign
In case customers don't feel satisfied, T-Mobile will pay for them to shift back to Verizon