Amazon.com Results Miss Estimates, Issues 4Q Forecast Slightly Below Calls

  @DavidZie on
Amazon.com CEO Jeffrey Bezos
Amazon.com CEO Jeff Bezos

Amazon.com Inc. (Nasdaq: AMZN), the No. 1 e-retailer, reported a third quarter net loss of $274 million, or 60 cents a share, ahead of estimates, and issued a forecast for fourth-quarter revenue that was about $300 million below estimates.

Shares fell about 2 percent to $229.76 in after-hours trading. They’d gained about 40 percent this year.

Amazon’s revenue rose 27 percent to $13.81 billion, about $300 million below estimates. On an operating business, the company’s loss was $28 million, compared with year-earlier net income of $63 million.

The company took a one-time charge of $169 million for its LivingSocial site, which amounted to 37 cents a share. LivingSocial is a daily deals site in which Amazon had invested $175 million in 2010.

“Our approach is to work hard to charge less,” said CEO Jeffrey Bezos. “Sell devices near breakeven and you can pack a lot of sophisticated hardware into a very low price point,” he said of the year-old effort to battle Apple (Nasdaq: AAPL), the world's most valuable technology company, with the Kindle Fire tablet.

Amazon didn’t say how many Kindle Fires it sold in the quarter, although Bezos said The $199 Kindle Fire HD is the company’s best-selling tablet.

Looking to the fourth quarter, Amazon predicted revenue would range between $20.25 billion and $22.75 billion, or between 16 percent and 31 percent above 2011. On operations, earnings could be as much as $310 million with a loss that could be as much as $490 million, compared with earnings of $260 million a year ago.

Amazon reported cash and investments of $2.9 billion. A year ago, Bezos, who owns 19..5 percent of the company himself, said he would do whatever it took to establish the Kindle Fire as a best-selling product.

Join the Discussion
Nintendo's Newest Kirby Game Is A Total Detour
Nintendo's Newest Kirby Game Is A Total Detour
Fitbit's First Activity Watch Falls Short
Fitbit's First Activity Watch Falls Short
Dying Light Is The Spiritual Successor To 'Dead Island'
Dying Light Is The Spiritual Successor To 'Dead Island'
The Last Mitsubishi Evolution
The Last Mitsubishi Evolution
The i8 Is Proof BMW Should Make More Mid-Engined Cars
The i8 Is Proof BMW Should Make More Mid-Engined Cars
QD Vision Shows Off Cheap 4K TVs
QD Vision Shows Off Cheap 4K TVs

More Video