Amazon posts strong quarter, but margin woes emerge
Third quarter tops projections and the company's fourth quarter revenue outlook is better than expected. Forth quarter operating profits, however, look light.
Amazon's third quarter topped projections and its fourth quarter revenue outlook is better than expected. The company's fourth quarter operating profits, however, look light.
The company reported net income of $231 million, or 51 cents a share, on revenue of $7.56 billion, up from $5.45 billion a year ago (statement). Wall Street was expecting earnings of 48 cents a share on revenue of $7.36 billion.
Meanwhile, the company also delivered a healthy fourth quarter outlook. Amazon projected revenue of $12 billion to $13.3 billion. That's a wide range, but Wall Street was expecting fourth quarter sales of $12.3 billion. Amazon's midpoint of that range is well above expectations. Amazon also said it expected operating income of $360 million to $560 million.
Read more of "Amazon: Strong third quarter, outlook, but margin worries emerge" at ZDNet's Between the Lines.