Thursday, March 14, 2013

Amazon Q3 Tops Street Ests, But Margins Fall, And Shares Drop

Amazon.com (AMZN) this afternoon posted better-than-expected Q3 results, but the shares are trading lower after hours, perhaps on concerns about lower margins.

The company reported revenue of $7.56 billion, up 39% from a year ago, and ahead of the Street at $7.35 billion. Profits were 51 cents a share, three cents ahead of consensus. Net income was up 16% from a year ago, while operating income was up 7%.

Operating margin appears to have dropped about a full point, to 3.5%, from 4.6%.

For Q4, the company sees revenues ranging from $12 billion to $13.3 billion, up 26%-40%, operating income ranging from $360 million to $560 million. (Q3 operating income was $268 million.)

AMZN in late trading is down $8.42, or 5.1%, to $156.55.


No comments :

Post a Comment