Amazon's Profit Jumps, But Sales Growth Disappoints
03 February 2017 - 8:43AM
Dow Jones News
By Laura Stevens
Amazon.com Inc. on Thursday posted a 55% rise in fourth-quarter
profit, turning its banner holiday season into a sustained streak
of profitability.
However, shares of Amazon fell 3.4% to $811.50 in after-hours
trading as the company's total sales fell short of analyst
expectations.
For the quarter, profits rose to $749 million, or $1.54 a share,
from $482 million, or $1 per share, a year earlier. Analysts
surveyed by Thomson Reuters expected earnings of $1.35 per share.
This marks the seventh straight profitable quarter for Amazon.
Sales of $43.74 billion, up from $35.75 billion, were within
Amazon's own forecast of $42 billion to $45.5 billion but below
analysts' expectations of $44.68 billion.
According to receipt-tracker Slice Intelligence, the
Seattle-based online retailer was a clear winner during the
holidays, capturing nearly 40% of total online holiday sales, while
overall online spending surged an estimated 20%. The next closest
retailer was Best Buy Co., shy of 4% of e-commerce market
share.
Write to Laura Stevens at laura.stevens@wsj.com
(END) Dow Jones Newswires
February 02, 2017 16:28 ET (21:28 GMT)
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