Earnings: Amazon Q3 Profits, Revs Up, But Poor Outlook Sends Shares Down

This story was written by David Kaplan.
Although Amazon (NSDQ: AMZN) was able to beat analysts' forecast of $0.25 per share earnings, shares were still down as much as 14 percent in after hours trading, which Marketwatch attributed to a poor Q4 outlook. That said, compared to some others, Amazon reported healthy Q3 numbers, as net income grew 48 percent to $118 million, or $0.27 per diluted share, compared with net income of $80 million, or $0.19 per diluted share, last year. Revenue was up 31 percent to $4.26 billion, missing analysts' estimates of $4.28 billion. Amazon had offered revenue guidance of a range between $4.2 billion and $4.43 billion.

-- Outlook: Q4 net sales are expected to be between $6.0 billion and $7.0 billion, or to grow between 6 percent and 23 percent compared with Q407.

-- Operating income is expected to be between $145 million and $305 million, or between 46 percent decline and 13 percent growth compared with the same period the year before. More to come

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By David Kaplan