Amazon posts strong quarter (update)

Posted Jan 30th 2008 4:32PM by Jonathan Berr
Filed under: Earnings Reports, Consumer Experience, Amazon.com (AMZN)

Amazon.com Inc. (NASDAQ: AMZN) today posted a stronger-than-expected fourth quarter and gave bullish guidance for sales. However, the company's forecast for full-year operating income of $785 million and $985 million, below the Bloomberg forecast of $1.18 billion. Shares of the largest Internet retailer, which doubled last year, ~~soared~~ fell in after-hours trading.

Net income increased 112% to $207 million, or 48 cents per share, compared with $98 million, or 23 cents, a year earlier. Sales rose 42% to $5.67 billion in the fourth quarter, helped by strong growth outside the U.S. Analysts had expected profit of 48 cents on revenue of $5.37 billion.

"In our view, these unusual financial results are driven by one thing: continuously improving the customer experience," said Chief Executive Jeff Bezos in the earnings release.

The Seattle-based company issued guidance for revenue in the first quarter of between $3.95 billion and $4.15 billion with operating income of between $155 million to $200 million. For the year, Amazon expects sales of $18.75 billion to $19.75 billion with operating income of $785 million to $985 million. Analysts are expecting quarterly sales of $3.92 billion and $14.52 billion for the year.

Tags: amzn, etail, internet retail, InternetRetail, inthenews, jeff bezos, JeffBezos