Amazon Misses Estimates in Q3

Amazon Misses Estimates in Q3
Amazon's Kindle Fire Inc. missed estimates in the third quarter, sending its shares down as much as 19 percent in after-hours trading.

For the period ended Sept. 30, the parent of earned a net income of $63 million, or 14 cents a share, a 73 percent drop from $231 million, or 51 cents, in the same period a year ago.

Revenue advanced 44 percent to $10.88 billion, but analysts were looking for $10.93 billion, as polled by Yahoo Finance. Earnings were also expected to come in at 24 cents a share.

Expenses, mainly related to investment in fulfillment centers for the Kindle, skyrocketed in the quarter, leaving operating income at $79 million, down from $268 million a year ago.

For the fourth quarter, Amazon expects net sales to be between $16.45 billion and $18.65 billion, representing year-over-year growth of between 27 percent and 44 percent.

At quarter’s end, the Internet retail giant had $2.8 billion in cash and cash equivalents, and $2.3 billion long-term debt.