Inside This Issue - News
Amazon encounters some bumps in road
February 10th, 2014
SEATTLE – In what may be a sign of growing pains for the online retailing giant, Amazon.com reported fourth quarter earnings that missed analyst estimates, and projected a possible operating loss in the first quarter of its 2014 fiscal year.
Although fourth quarter sales rose 20% to $25.59 billion and net income soared 146% to $239 million, earnings of 51 cents per share was not close to the average estimate of 66 cents per share among analysts surveyed by Thomson Reuters.
Amazon projected first quarter operating results ranging from a $200 million loss to a $200 million profit. The company explained that the guidance includes about $350 million for stock-based compensation and amortization of intangible assets. Sales for the quarter are expected to increase between 13% and 24% to a range of $18.2 billion to $19.9 billion.
The company continues to invest in growth, though, and it is reportedly considering a plan to provide smaller brick-and-mortar retailers checkout systems based on its Kindle tablets, as a way to get access to data about in-store purchases.