By Maria Armental
Amazon.com Inc.'s fourth-quarter profit declined as the
e-commerce giant's spending continued to weigh on its bottom
line.
But shares climbed almost 5% after hours as the earnings easily
beat estimates.
For the current quarter, Amazon expects sales of $20.9 billion
to $22.9 billion, up 6% to 16% from the year-earlier period,
compared with the $23.05 billion projected by analysts polled by
Thomson Reuters.
Launched in Seattle in 1995, Amazon has expanded through
acquisitions and new ventures, from groceries to its own line of
everyday household products, media offerings and web services. On
Wednesday, Amazon said it would launch an email and electronic
calendar service, venturing into a crowded field that pits it
against the likes of Microsoft Corp. and Google Inc.
The company Amazon Prime, its annual membership program, saw its
worldwide paid membership grow 53% last year.
Amazon has been aggressively bulking up the program, adding
content to its unlimited streaming services and a series of
products available only to members who pay the $99 annual fee and
rolling out a one-hour bike messenger delivery service in
Manhattan. The company, however, hasn't released membership
numbers.
Late last year, Amazon said more than 10 million customers used
Prime unlimited shipping service for the first time during the
holiday season, but that figure could include customers taking
advantage of its 30-day free trial.
For the latest period, Amazon reported net income of $214
million, or 45 cents a share, compared with $239 million, or 51
cents a share, a year earlier.
Analysts surveyed by Thomson Reuters were expecting a profit of
17 cents a share.
Sales rose to $29.33 billion. Adjusting for the impact of
currency exchange rates, sales rose 18%. Amazon had projected $27.3
billion to $30.3 billion.
Operating expenses rose to $28.7 billion from $25.1 billion.
Through Thursday's close, the company's stock has fallen 19%
over the past 12 months.
--Greg Bensinger contributed to this article.
Write to Maria Armental at maria.armental@wsj.com
Access Investor Kit for Amazon.com, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0231351067
Subscribe to WSJ: http://online.wsj.com?mod=djnwires