The Economic Times (Delhi edition)
Amazon.com said on Wednesday that its profit climbed 48 percent in the third quarter, but the company reduced its full-year sales outlook, showing that the online retailer cannot escape the weak economy. Its shares dived in after-hours trading.
Chief financial officer Tom Szkutak, speaking on a conference call with analysts, said the company experienced slower growth rates near the end of the third quarter, coinciding with the onset of recent turmoil in global financial markets.
Amazon said it now anticipates full-year revenue of $18.46 billion to $19.46 billion, below the $19.52 billion that analysts polled by Thomson Reuters were expecting. In July, Amazon had predicted 2008 sales of $19.35 billion to $20.10 billion.
Amazon shares fell $6.82, or 13.6 percent, in extended trading, after finishing regular trading down 24 cents at $49.99. Analysts were widely expecting the company to lower its guidance, but some said they were not expecting it to be lowered so much.
Lazard Capital Markets analyst Colin Sebastian said Amazon is clearly “feeling the impact of the weaker economy,” but added that “at the same time, they continue to grow much faster than overall ecommerce, so the platform remains strong from that point of view.’’
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