Amazon.com Inc. (NASDAQ: AMZN) said first quarter profit rose 30% driven by strong sales across the board. .Amazon shares slumped in after-hours trading after the company lowered its operating income forecast for the year.
Net income at Amazon rose to $143 million in the first quarter, or 34 cents per share, from $111 million, 26 cents, a year earlier. Sales increased 37% to $4.13 billion. The results beat the views of Wall Street analysts who had expected a profit of 32 cents on revenue of $4.08 billion.
Amazon expects second quarter sales to be between $3.875 billion and $4.075 billion on operating income of $120 million and $160 million. For the year, the Seattle-based e-tailer is forecasting net sales of $19.1 billion to $20 billion on operating income of between $740 million and $940 million. Earlier this year, the company had forecasted operating income of $985 million, according to Bloomberg News. The operating income guidance was wide enough to drive an 18-wheeler through.
Once again, Amazon has left investors up the creek -- or river -- without a paddle.
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Reader Comments (Page 1 of 1)
4-23-2008 @ 5:36PM
Sheldon L said...
JB, let me know when the stock hits $40...with P/E of 80 and low supermarket profit margins of 3%...they should just go ahead and change name from Amazon to amazing :-)