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: India on tap as first market for Microsoft Lumia 535

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

Toyota finds new air bag issue, recalls more cars

46 minutes ago

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

15 hours ago

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

BlackBerry courts iPhone users with cash

Nov 25, 2014

Canadian smartphone maker BlackBerry is wooing Apple customers with a cash offer for trade-ins of iPhones for its new square-screened, keyboard-equipped Passport.

HP earnings show continued struggle

Nov 25, 2014

Venerable tech giant Hewlett-Packard has been struggling for three years to turn its business around. Its latest earnings show it still has more work ahead.

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.