Amazon.com Plunges After Forecasting Potential 4Q Loss

The shares of Amazon.com Inc. (AMZN) are poised to plunge sharply on the open this morning, after the company reported a 73% drop in third-quarter earnings and the potential for a fourth-quarter operating loss. Heading into the open, AMZN shares are off more than 12% at about $198.51.

For the quarter, the No. 1 Internet retailer said that it earned $63 million, or 14 cents per share, down sharply from last year’s profit of $231 million, or 51 cents per share. Wall Street was expecting a profit of 24 cents per share. Revenue rose 44% to $10.88 billion.

Looking ahead to the fourth-quarter, Amazon projected a range from a potential operating loss of $200 million to a profit of $250 million. The company placed revenue for the fourth-quarter in a range of $16.45 billion to $18.65 billion, surrounding the consensus estimate for $18.15 billion.

Read Full Article from Forbes

- Posted: 2011-10-26 11:47:08

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