Amazon Misses Profits Expectations Despite 20% Rise in Revenues
Published on: 31st Jan 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
Amazon has reported its fourth quarter financial results and says that it saw a 20 percent rise in revenues and a sharp jump in profits at the often profit adverse company.
Net sales increased 20% to $25.59 billion in the fourth quarter, compared with $21.27 billion in fourth quarter 2012. Excluding the $258 million unfavorable impact from foreign exchange rates, net sales grew 22% compared with fourth quarter 2012.
Of the sales USD15.3 billion came from North America and USD10.1 billion from overseas markets.
The company, which is still looked upon as a book seller actually generated the bulk of its revenue selling electronics and general merchandise. Just US$7.2 billion of its sales came from media, which includes books and music. The bulk, of USD17.1 billion was the sale of consumer goods.
Operating income increased 26% to $510 million in the fourth quarter, compared with $405 million in fourth quarter 2012.
Net income increased to $239 million in the fourth quarter, compared with $97 million a year ago.
However, the net profit missed most expectations, and the company's share price fell by 10 percent in after hours trading.
For the current quarter, the company expects that net sales will be between $18.2 billion and $19.9 billion, or to grow between 13% and 24% compared with first quarter 2013.