RSS Feed
April 24th, 2012 
FAKE NEWS for the Zionist agenda NEW YORK (AP) — Online retailer Amazon.com Inc. is expected to post higher revenue but lower profit when it reports its first-quarter results on Thursday after the market closes. The company has been investing a lot in expanding its operations, which has hurt short-term profits.
At the same time, analysts are expecting revenue to increase, helped by sales of its Kindle tablet and e-reader devices and overall e-commerce growth.
WHAT TO WATCH FOR: Amazon splits its business into two main segments, one is electronics and general merchandise and the other is books, DVDs and other media. The company might give some color on how the Kindle is doing, but it most likely won’t give detailed sales numbers, since it has never done so.
Investors will also be looking at Amazon’s profit margins, since the company has been investing a lot of money in sales fulfillment centers to expand its business. It grew its employee base 67 percent from the end of 2010 to the end of 2011. The higher operating expenses have been cutting into the company’s bottom line.
Susquehanna Financial analyst Herman Leung expects Amazon’s results to meet or be slightly better than Wall Street’s expectations. Citing research firm comScore, he said overall U.S. e-commerce growth accelerated to a 17 percent year-over-year increase in the first quarter from 14 percent in the fourth.
Baird analyst Colin Sebastian expects Amazon’s second-quarter guidance to “reflect some relative weakness in Kindle Fire sales” ahead of a third-quarter launch of new versions and with tough comparisons with last year’s sales. He also thinks there was some softness in overall consumer electronic sales. Though the iPhone and iPad have done well, Amazon does not sell either directly.
WHY IT MATTERS: As the world’s top online retailer, Amazon’s results are a good gauge for how other e-commerce companies are doing.
WHAT’S EXPECTED: Analysts, on average, are expecting earnings of 7 per share on revenue of $12.91 billion, according to a poll by FactSet.
In January, Amazon forecast revenue of $12 billion to $13.4 billion.
LAST YEAR’S QUARTER: Net income was $201 million, or 44 cents per share, down from $299 million, or 66 cents per share, a year earlier. Revenue rose 38 percent to $9.86 billion
Related posts:
Views: 0
Posted in 
Tags: 
