Amazon Loses Money Inc. (NASDAQ: AMZN) has reported that sales were up 27% to $13.81 billion and its loss was $0.23 in normalized EPS after backing out items. Thomson Reuters was calling for -$0.08 EPS and $13.92 billion. One word of caution: Amazon includes so many items that it is a very jumbled report.

Guidance was listed as follows: Net sales are expected to grow 16% to 31% and come in between $20.25 billion and $22.75 billion. The company is also projecting that the operating income (or loss) is expected to be between negative $490 million and positive $310 million, compared with $260 million last Christmas season's quarter. This guidance includes approximately $290 million for stock-based compensation and amortization of intangible assets.

Common shares outstanding plus shares underlying stock-based awards totaled 469 million on September 30, 2012, consistent with 469 million one year ago. Thomson Reuters sees estimates of $0.52 EPS and $22.79 billion in forward quarter guidance covering the holiday season, which would be an expectation of 30.7% revenue growth.

The company said "Operating loss was $28 million in the third quarter, compared with operating income of $79 million in third quarter 2011. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating loss was $3 million. Net loss was $274 million in the third quarter, or $0.60 per diluted share, compared with net income of $63 million, or $0.14 per diluted share, in third quarter 2011. The third quarter 2012 includes a loss of $169 million, or $0.37 per diluted share, related to our equity-method share of the losses reported by LivingSocial, primarily attributable to its impairment charge of certain assets, including goodwill."

Amazon shares closed down 2.4% at $223.00 on the day and shares are down another 4.2% at $213.75 so far in the after-hours trading session.


Filed under: 24/7 Wall St. Wire, Earnings, Earnings Warning, Internet, Retail Tagged: AMZN, featured
Read Full Story


NASDAQ 7,481.99 0.25 0.00%
S&P 500 2,752.01 4.68 0.17%
DJIA 24,946.51 72.85 0.29%
NIKKEI 225 21,676.51 -127.44 -0.58%
HANG SENG 31,501.97 -39.13 -0.12%
DAX 12,389.58 44.02 0.36%
USD (per EUR) 1.23 0.00 -0.12%
USD (per CHF) 0.95 0.00 0.13%
JPY (per USD) 105.91 -0.09 -0.09%
GBP (per USD) 1.39 0.00 0.00%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.