Amazon narrows third-quarter loss after large rise in revenue
By Sarah Skidmore Sell, APAP--Amazon.com's revenue rose more than Wall Street expected in its fiscal third quarter, but the online retailer posted another loss due to ongoing investments in its business.
October 26, 2013, 12:04 am TWN
Steady profits have proven elusive for the world's largest online retailer as it spends heavily on filling orders, marketing and technological improvements and innovations. But investors were cheered by its revenue forecast for the fourth-quarter, a sign of confidence and optimism as it enters the key holiday shopping season. Shares rose 8 percent in after-hours trading.
Amazon has been busy launching new products, expanding the number of fulfillment centers and adding robots to its line to help get packages out the door. Operating expenses rose 24 percent during the quarter.
The Seattle-based company posted a loss of US$41 million, or 9 cents per share, for the quarter that ended in September, matching analyst expectations. That compared with a loss of US$274 million, or 60 cents per share, in the same quarter last year. The prior year includes a one-time US$169 million loss related to its stake in online deals site LivingSocial.
Revenue jumped 24 percent US$17.09 billion from US$13.81 billion. Wall Street predicted US$16.76 billion, according to FactSet.
Amazon said it expects revenue for its fourth quarter to fall between US$23.5 billion and US$26.5 billion, bracketing analysts' prediction of US$25.88 billion. That's also up 10 to 25 percent from its fourth quarter last year.
Shares of Amazon.com Inc. increased US$27.19 to US$359.90 after the market's close. Its shares increased US$5.45 to close regular trading at US$332.21 Thursday, up 32 percent this year.