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| Amazon profit misses estimates and its outlook disappoints | Amazon profit misses estimates and its outlook disappoints |
| (about 9 hours later) | |
| Web giant Amazon has reported a lower-than-expected third quarter profit as expenses rose, causing shares to tumble in after-hours trading. | Web giant Amazon has reported a lower-than-expected third quarter profit as expenses rose, causing shares to tumble in after-hours trading. |
| The company also gave a disappointing fourth-quarter revenue forecast. | The company also gave a disappointing fourth-quarter revenue forecast. |
| While quarterly revenues jumped 29%, in line with expectations, Amazon said its net income rose to $252m (£207m), or 52 cents per share, from $79m a year earlier. | While quarterly revenues jumped 29%, in line with expectations, Amazon said its net income rose to $252m (£207m), or 52 cents per share, from $79m a year earlier. |
| Earnings per share were far short of the average estimate of 78 cents. | Earnings per share were far short of the average estimate of 78 cents. |
| Amazon's shares fell more than 5% in after-hours trading. | |
| Total operating expenses rose 31.5% to $10.94bn as the company invested in Amazon Web Services, expanded its Prime programme internationally, built up its warehouse and delivery infrastructure and increased its original video output. | Total operating expenses rose 31.5% to $10.94bn as the company invested in Amazon Web Services, expanded its Prime programme internationally, built up its warehouse and delivery infrastructure and increased its original video output. |
| Amazon forecast net sales of between $42.0bn and $45.5bn for the fourth quarter, which includes the holiday shopping season. | Amazon forecast net sales of between $42.0bn and $45.5bn for the fourth quarter, which includes the holiday shopping season. |
| Analysts on average had expected fourth-quarter sales of $44.58bn. | Analysts on average had expected fourth-quarter sales of $44.58bn. |
| Third quarter revenues were boosted by net sales rising to $32.71bn from $25.36bn the year before. | Third quarter revenues were boosted by net sales rising to $32.71bn from $25.36bn the year before. |
| Sales were helped by its Prime Day annual shopping festival, strong back-to-school shopping and its cloud services business. | Sales were helped by its Prime Day annual shopping festival, strong back-to-school shopping and its cloud services business. |