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 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.
31 Jan 2014