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Last Update: 26-Oct-11 09:27 ET
Amazon's Third Quarter Earnings Fall Short of Expectations
Amazon (AMZN $227.15) reported third quarter earnings of $0.14 per share, $0.09 worse than the Capital IQ Consensus Estimate of $0.23.
Revenues rose 43.9% year/year to $10.88 billion versus the $10.95 billion consensus.
Amazon.com reports third quarter operating margin of 0.7% versus 2.0% last quarter and 3.5% in last year's third quarter.
For the fourth quarter, the company issued revenue guidance of $16.45 billion to $18.65 billion versus the $18.21 billion Capital IQ Consensus Estimate.
Issues downside operating income guidance, sees fourth quarter operating income of ($200) to $250 million vs $491 million estimate.
"September 28th was the biggest order day ever for Kindle, even bigger than previous holiday peak days -- we introduced Kindle Fire for $199, Kindle Touch 3G for $149, Kindle Touch for $99, and our all new Kindle for only $79," said Jeff Bezos, founder and CEO of Amazon.com. "In the three weeks since launch, orders for electronic ink Kindles are double the previous launch. And based on what we're seeing with Kindle Fire pre-orders, we're increasing capacity and building millions more than we'd already planned."
Revenues rose 43.9% year/year to $10.88 billion versus the $10.95 billion consensus.
Amazon.com reports third quarter operating margin of 0.7% versus 2.0% last quarter and 3.5% in last year's third quarter.
For the fourth quarter, the company issued revenue guidance of $16.45 billion to $18.65 billion versus the $18.21 billion Capital IQ Consensus Estimate.
Issues downside operating income guidance, sees fourth quarter operating income of ($200) to $250 million vs $491 million estimate.
"September 28th was the biggest order day ever for Kindle, even bigger than previous holiday peak days -- we introduced Kindle Fire for $199, Kindle Touch 3G for $149, Kindle Touch for $99, and our all new Kindle for only $79," said Jeff Bezos, founder and CEO of Amazon.com. "In the three weeks since launch, orders for electronic ink Kindles are double the previous launch. And based on what we're seeing with Kindle Fire pre-orders, we're increasing capacity and building millions more than we'd already planned."
