Photo: Steve Kovach, Business Insider
The Amazon numbers are out!It’s a slight miss on the top line and big miss on the bottom line.
The guidance is very weak, sending the stock tanking 18% in snap reaction during after-hours trading. (UPDATE: The shares are starting to come back, it’s only down 11%.)
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Here’s how it did versus Wall Street expectations:
- Revenue: $10.88 billion vs. $10.93 billion.
- EPS: $0.14 vs. $0.24.
- Operating income: $79 million which is below its midpoint guidance from July.
- Q4 revenue guidance: $16.4-$18.6 billion vs. $18.05 billion as a midpoint.
- Q4 operating income guidance: -$200 million to $250 million ($25 million midpoint) vs. $669 million as a midpoint.
The fact that the company is projecting a possible operating income loss all but confirms that its losing a lot of money on the Kindle Fire. In the earnings release Amazon says, “Based on what we’re seeing with Kindle Fire pre-orders, we’re increasing capacity and building millions more than we’d already planned.”
Investors are fleeing now, but this shouldn’t be a total shock. Amazon has delivered really weak operating income guidance for the last three quarters.