Amazon sees income rise 68%

Amazon.com today posted a 68 per cent surge in net income that blew past analyst estimates, but its revenue and income outlook…

Amazon.com today posted a 68 per cent surge in net income that blew past analyst estimates, but its revenue and income outlook failed to impress Wall Street and its shares fell 5 per cent.

The world's largest online retailer reported net income for the first quarter of $299 million, or 66 cents per share, up from $177 million, or 41 cents per share, a year earlier. Analysts, on average, had been expecting earnings of 61 cents per share.

Revenue jumped 46 per cent to $7.13 billion - above the $6.87 billion expected by analysts.

Amazon, whose profit surged 71 per cent during its holiday quarter, has been on a roll since last year, its sales outpacing both the broader e-commerce and brick-and-mortar retail markets.

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Looking ahead, Seattle-based company estimated operating profit in its second quarter of $220 million to $320 million on revenue of $6.1 billion to $6.7 billion. Analysts, on average, have been expecting an operating profit of $327.8 million on revenue of $6.43 billion in the second quarter.

Amazon shares fell 5 per cent in extended trade to $142.56 after closing at $150.09 on Nasdaq.

Reuters