April 27, 2005
Yesterday, Amazon posted weaker quarterly profits that were
in line with Wall Street estimates, as the Internet book and CD retailer
had customers take advantage of lower shipping prices. Shares of
Amazon.com fell four percent on NASDAQ Tuesday.
Net income fell to $78 million, or 18 cents a share, matching the average forecast which includes charges. In the year-earlier quarter Amazon had net income of $111 million, or 26 cents a share.
Revenue rose 24 percent to $1.90 billion from $1.53 billion as the weak U.S. dollar helped boost the value of overseas sales and the company's fixed-price and free shipping programs attracted more customers. That matched analysts' revenue target, according to First Call.
Analysts were expecting Amazon earnings of 23 cents per share excluding charges on revenue of $1.9 billion, according to First Call.
Shares of Amazon, which closed down 2.5 percent at $32.71 on the Nasdaq, slipped further to $31.40 in after-hours trade.
Net sales grew 22 percent when the impact of the weak dollar is stripped out.
For the second quarter, the company said it would have revenue of $1.68 billion to $1.83 billion. Operating income is expected to be $50 million to $80 million, including stock-based compensation of $35 million, the adoption of an accounting change and other items.
Analysts polled by First Call had expected second-quarter revenue of $1.71 billion.
Source: CNNfn.com
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