Amazon posts 3Q results below expectations

Oct 25, 2012 by Barbara Ortutay

(AP)—Amazon's stock is falling after the world's largest online retailer reported third-quarter results below Wall Street's expectations, including a large loss that was weighed by its stake in online deals service LivingSocial.

Amazon.com Inc. posted a loss of $274 million, or 60 cents per share, in the July-September period. That's down from earnings of $63 million, or 14 cents per share, a year earlier.

The latest quarter's results include a loss of 37 cents per share related to Amazon's stake in LivingSocial. Without this charge, it still would have lost 23 cents per share, worse than what analysts are expecting.

Revenue grew 27 percent to $13.81 billion, from $10.88 billion, falling short of analysts' expectations.

Analysts surveyed by FactSet, on average, were expecting a loss of 7 cents per share on revenue of $13.91 billion.

Amazon said its $199 Kindle Fire HD tablet is its best-selling product worldwide, but as usual, it did not give specific sales figures.

"Our approach is to work hard to charge less. Sell devices near breakeven and you can pack a lot of sophisticated hardware into a very low price point," founder and CEO Jeff Bezos said in a statement.

Amazon has a larger version of the Kindle Fire HD out next month.

Amazon's results come two days after Apple Inc. introduced a smaller iPad, the Mini, for $329. In its press release announcing the results, Amazon included a list trumpeting its high-definition Kindle Fires as cheaper than the iPad Mini and with more features. However, Apple's iPad has a much wider selection of third-party apps.

Seattle-based Amazon's stock slid $6.42, or 2.9 percent, to $216.50 in after-hours trading. The stock had closed down $5.57, or 2.4 percent, at $222.92 in the regular trading session.

Explore further: 2012 movie massacre hung over 'Interview' decision

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Qualcomm 3Q results beat Wall Street estimates

Jul 20, 2011

(AP) -- Wireless chip-maker Qualcomm Inc.'s results for the latest quarter beat Wall Street's expectations, and its projections for the current quarter are also above analysts' estimates.

CenturyLink 3Q net income falls as expenses rise

Nov 02, 2011

(AP) -- Phone company CenturyLink Inc. says its third-quarter net income fell as rising operating expenses related to its April acquisition of larger phone company Qwest overshadowed increased revenue.

EBay posts higher 3Q earnings, revenue

Oct 17, 2012

EBay reported Tuesday that its third-quarter net income rose 22 percent thanks to higher revenue at its PayPal payments service and at the marketplaces business that includes eBay.com.

Recommended for you

Sony faces 4th ex-employee lawsuit over hack

36 minutes ago

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

1 hour ago

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

15 hours ago

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

Clooney slams skittish Hollywood after Sony hack

21 hours ago

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.