AMAZON STOCK DROPS AFTER REPORTING DISAPPOINTING Q3 INCOME
E-commerce giant Amazon, Inc. has announced financial results for its third quarter ended September 30, 2016.
Net income was $252 million in the third quarter, or 52 cents per diluted share, compared with $79 million, or $17 cents per diluted share, in third quarter 2015. Estimates, according to some reports, were as high as 78 cents per diluted share. As a result, in Friday morning trading, the company’s stock was down approximately 4 percent.
On the plus side, net sales increased 29 percent to $32.7 billion in the third quarter, compared with $25.4 billion in third quarter 2015, due in part to better foreign exchange rates. Operating income was $575 million in the third quarter, compared with $406 million in third quarter 2015.
The company also said for the fourth quarter, net sales are expected to be between $42.0 billion and $45.5 billion, a growth rate between 17 and 27 percent, compared with fourth quarter 2015. In addition, operating income is expected to be between $0 and $1.25 billion, compared with $1.1 billion in fourth quarter 2015.
