Shares are -8.7% after the e-retailer presented a mixed report about its 4Q results, and projected a decline in its 1Q operating profit. Amazon generated net income of $177M in the last three months of 2011, down 57.5% from the same period in 2010, on revenues of $17.4B, up 34.6%. The revenue figure fell short of the $18.2B that analysts projected. Earnings, at 38 cents a share, handily beat the 19 cents forecast. The profit drop is partly due to Amazon’s expenditures to build new fulfillment centers, and sales of its Kindle e-readers and tablets — priced below cost in order to gin up sales of books and other media. The company says that Kindle sales were up 177% over the holiday season. But investors were surprised to see that profits are still under pressure. Amazon forecast that operating income in 1Q will come in anywhere from a $200M loss to a $100M profit — which means it will be down as much as 162% or as little as 69% from the period in 2011.
Amazon Down In After-Hours Trading Following Downbeat 1Q Profit Forecast
What's Hot on Deadline
Sarah Jones' Parents Unveil New "Safety For Sarah" PSA, Tell Sundance "Never Again, Never Forget" - Video
More From Lieberman
- Yahoo’s $40B Gift To Shareholders: It Will Spin Off Alibaba Holdings
- WWE Network Pins 1M Subs, Taking Company Shares Off The Ropes
- IMAX Stock Buoyed By ‘Mission: Impossible’ Switch And Box Office Sales
- NYC Passes Tokyo As Top Entertainment & Media Spender – Report
- Can CEOs Convince Wall Street That TV’s Lost Ad Dollars Will Come Back?
- Former Fox Station Employee Commits Suicide Outside Corporate Headquarters