For the second straight quarter, investors were disappointed with Amazon.com’s results.
After the close on Tuesday, Amazon reported first-quarter earnings of 18 cents a share, five cents below analysts’ estimates. Excluding a $56 million tax expense, the company would have met estimates, but investors were disappointed anyway, sending the stock 5% lower after hours.
Revenues rose 24% to $1.9 billion, matching expectations. Sales were boosted by the weak dollar and customers taking advantage of free shipping through the new Amazon Prime program. Higher technology spending and other expenses pressured operating margins in the quarter.
Amazon’s second-quarter revenue guidance of $1.675-$1.825 billion compared favorably to analysts’ expectations of $1.7 billion in sales, and the company said it expects full-year revenues of $8.175-$8.675 billion, compared to $8.4 billion forecasts. The company’s operating income guidance was wide-ranging due to the effect of stock-based compensation.
Stocks were battered during the day on a report that showed consumer confidence falling.
The Nasdaq fell 23 to 1927, the S&P 500 lost 10 to 1151, and the Dow tumbled 91 to 10,151. Volume rose to 1.95 billion shares on the NYSE, and 1.73 billion on the Nasdaq. Decliners led 22-10 on the NYSE, and 21-9 on the Nasdaq. Downside volume was 79% on the NYSE, and 82% on the Nasdaq. New highs-new lows were 35-84 on the NYSE, and 36-151 on the Nasdaq.
Lexmark tumbled 14% after the company missed estimates.
IBM climbed 1% on a $5 billion stock buyback and dividend hike.
PEC Solutions soared 35% on news that the company will be acquired by Nortel
.
FileNet surged 15% on its results.
Monster , Agere
and InFocus
fell on their results.