Amazon posts strong quarter, but margin woes emerge

Amazon's third quarter topped projections and the company's fourth quarter revenue outlook is better than expected. Amazon's fourth quarter operating profits, however, look light.

Amazon's third quarter topped projections and its fourth quarter revenue outlook is better than expected. The company's fourth quarter operating profits, however, look light.

The company reported net income of US$231 million, or 51 cents a share, on revenue of US$7.56 billion, up from US$5.45 billion a year ago. Wall Street was expecting earnings of 48 cents a share on revenue of US$7.36 billion.

Meanwhile, the company also delivered a healthy fourth quarter outlook. Amazon projected revenue of US$12 billion to US$13.3 billion. That is a wide range, but Wall Street was expecting fourth quarter sales of US$12.3 billion. Amazon's midpoint of that range is well above expectations. Amazon also said it expected operating income of US$360 million to US$560 million.

Read more of "Amazon: Strong third quarter, outlook, but margin worries emerge" at ZDNet.

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