Amazon Stock Jumps – 1Q Profits Beat Estimates
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SEATTLE (AP) — Amazon.com Inc. posted first-quarter profits Thursday that blew by analysts’ estimates and caused the company’s stock to jump in extended trading. The company said its Kindle Fire tablet remains its best-selling item, but its outlook for revenue growth was slower than expected.
Net income in the January-March period came to $130 million, or 28 cents per share. That’s down from net income of $201 million, or 44 cents per share, a year ago.
The result was still much higher than the 6 cents per share expected by analysts polled by FactSet.
Revenue grew 34 percent to $13.18 billion, also beating the $12.91 billion expected by analysts.
Shares rose $28.51, or 14.6 percent, to $224.50 in extended trading after the release of results.
The company said it expects revenue in the second quarter to grow between 20 percent and 34 percent or to between $11.9 billion and $13.3 billion, which includes a drag from the negative impact of foreign exchange movements. Before Amazon released its outlook for the second quarter, analysts had expected second quarter revenue of $12.8 billion. That was higher than the midpoint of Amazon’s forecast of $12.6 billion.
– Copyright 2012 The Associated Press