Amazon.com has announced financial results for its third quarter that ended on September 30. The news is not good for Amazon. Net sales increased 20 percent to $20.58 billion in the third quarter, compared with $17.09 billion in the third quarter of 2013. Despite this increase, Amazon’s net loss was $437 million in the third quarter, or $0.95 per diluted share. In 2013 the net loss was $41 million, or $0.09 per diluted share in the same time period.
The company missed Wall Street estimates of a $0.74 loss per share, and quarterly sales estimates were also off target. Forecasts were expecting $20.84 billion in sales, with the company turning a profit. Trading after hours on the news has hit Amazon’s stock for almost 10 percent of its closing value.
It isn’t all bad. Amazon is calling the quarter a success, using the Kindle Voyage, and Kindle Fire HDX line refresh as examples. Other positives of note are Amazon Web Service expansions, a 3D printed project store and an expansion of AmazonFresh. All of those things should keep making money for them. Amazon did not give sales numbers from its hardware division. For this next quarter, net sales are expected to be between $27.3 billion and $30.3 billion, or to grow between 7 percent and 18 percent compared with the fourth quarter 2013. The company is expecting to fall between a $570 million loss, and $430 million gain.
Source ElectronistaFiled Under: Technology News