Jul. 25, 2007
At the close of the markets today, Amazon.com posted quarterly net profit that shot up an
unexpected 250 percent, as sales in its market increased dramatically.
Amazon's strong earnings sent the price of its stock up almost 13 percent after-hours.
The company also raised its forecast for full-year sales. Bernstein Research analyst Jeffrey
Lindsay was quoted as saying "it's a blow-out second quarter. It's an amazing performance. A lot
of that growth seems to have come in the U.S., which is particularly surprising since that's
considered Amazon's most mature market."
Amazon's net income in the second quarter rose to $78 million, or 19 cents per share, compared
with $22 million, or 5 cents a share, for the corresponding period of 2006.
Revenue rose 35 percent to $2.89 billion in the second quarter, which is seasonally the slowest.
In North America, net sales rose 38 percent, Amazon said. Earnings of 19 cents per share topped the
Wall Street target of 16 cents, and revenue also beat the $2.8 billion average expectation, according
to Reuters Estimates.
Lindsay added that electronics and general merchandise posted an impressive 55 percent gain,
which he called "unusually good." He said results from North America were the best he had seen
in several years. Amazon actually said North American growth was the highest in more than six years.
For the third quarter, the company said it expects net sales in a range of $3 billion to $3.18 billion,
with operating income in a range of $75 million to $110 million.
On average, analysts have been expecting third-quarter revenue of $3.01 billion, according
to Reuters Estimates.
The company raised its full-year sales forecast to a range of $13.8 billion to $14.3 billion.
Previously, the company said it expected a range of $13.4 billion to $14.0 billion. Amazon shares
have surged since last quarter's results showed improved profit margins and pared-back spending.
Bullish investors, jumping on signals that investments in technology and content might be beginning
to pay off, have pushed Amazon's price up more than 60 percent as of Monday's close since first-quarter
earnings were announced in April 2007.
Amazon's stock has more than doubled since year-ago results came out.
The company is now valued well above major Internet players as well as brick-and-mortar retailers.
Amazon shares, as of Monday's close, traded at 52 times 2008 expected earnings, compared with 21 times
at eBay, 46 times at Yahoo and 14 times at Wal-Mart Stores.
Source: CNN Money
Advertise on E-Commerce News
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
and a marketing representative will be glad to answer you