Contact Us          Submit a News Story          News Archives          Home

E-Commerce News delivers lower earnings

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 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.


Advertise on E-Commerce News

Advertise on E-Commerce News and increase your site's visibility while boosting your sales.

If you have a product or service that deals with the ecommerce or ebusiness field, advertising on E-Commerce News can bring you new sales leads and close new marketing channels. This news portal is read by over 25,000 people a week.

Businessmen and woman that either own an ecommerce website, an ebusiness franchise, a B2B commercial exchange or by people in all walks of life that need to keep abreast of this fast-changing field. For more information on the many advantages of advertising on our news portal or to request pricing information, please send us an email and a marketing representative will be glad to answer you promptly.

Contact | Submit News | News Archives | Home

Copyright E-Commerce News, 2005. All rights reserved.

Avantex offers professional Web hosting services at wholesale-only prices. Get the best Linux or Windows hosting package for your eCommerce website. Learn more by clicking here.