Amazon shares fall despite strong Q4 results


Amazon shares fall despite strong Q4 results

Warwick Ashford

Amazon reported record revenues of $25.6bn in the fourth quarter of 2013, up 20% on the previous year, but below analyst expectations of $26.1bn.

The retailer reported strong profits of $239m or $0.51 earnings per share (EPS), up on the previous year’s figures of $97m or $0.21 EPS. Analysts were hoping for an EPS of $0.66, according to Thomson Reuters.

Amazon - Top 10 Twitter marketing blunders

Amazon reported an operating income of $510m for the quarter, compared with a loss of $25m in the previous quarter and a profit of $405m in the fourth quarter of 2012.

The firm reported an increase of net sales in areas such as its Amazon Web Services division to $1.23bn, compared with $820m the year before.

Amazon reported a 22% rise in full-year sales to $74.45bn, compared with $61.09bn in 2012.

Despite the strong results, the fact that Amazon missed analyst expectations for revenue and EPS sent the share price down as much as 10% in after-hours trading.

Amazon’s sales outlook for the current quarter of $18.2bn and $19.9bn also fell short of forecasts, according to the BBC.

Analysts said the firm is coming under increasing pressure from investors to boost its earnings.

They said investors are becoming impatient with Amazon's relatively small profits despite the company’s huge revenues.


Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy