Categories: Tech & Society

Amazon Misses on Revenues of $13.81 Billion, Massive EPS Loss of -$0.60

Today Amazon announced its third quarter financial performance, including revenue of $13.81 billion and earnings per share of -$0.60. Analyst expectations for the firm’s quarter were a loss of $0.08, on revenues of $13.93 billion. In the year ago quarter, Amazon earned some $0.14 cents per share.

What caused the massive miss? As it turns out, LivingSocial:

The third quarter 2012 includes a loss of $169 million, or $0.37 per diluted share, related to our equity-method share of the losses reported by LivingSocial, primarily attributable to its impairment charge of certain assets, including goodwill.

That means that 62% of the company’s losses came directly from its LivingSocial business. That’s a painful problem to have. Still, the company’s operating activities in the quarter generated a positive cash flow of $943 million.

Amazon just took a haymaker to the chin. Instead, the company is working to grow its revenue and market share across a number of product segments. So long as it can keep the pedal flat against the floorboards, and it has enough cash to keep the game up, short-term profits can be foregone.

As Amazon’s CEO Jeff Bezos once said: “We’re very comfortable being misunderstoodWe’ve had lots of practice.” During normal trading, Amazon’s stock was generally flat, losing some ground as investors waited for its report. In after hours trading, at the time of writing, Amazon is down sharply, off more than 10%.

The firm’s fourth quarter guidance is not likely to make investors particularly happy:

  • Net sales are expected to be between $20.25 billion and $22.75 billion, or to grow between 16% and 31% compared with fourth quarter 2011.
  • Operating income (loss) is expected to be between $(490) million and $310 million, compared with $260 million in the prior year period.
  • This guidance includes approximately $290 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions, investments or legal settlements are concluded and that there are no further revisions to stock-based compensation estimates.

That the company expects to grow its revenues is certainly positive, but the potential for a second massive loss must be unnerving to even those who believe in its long-tem vision.

Via: The Next Web

Team TechPanda

Recent Posts

Retail’s Return Rate Crisis: The Urgent Need for Proactive Solutions

The average return rate in eCommerce is estimated at 17.6% for 2024. Nearly 1 in 5 products…

8 hours ago

AI Launches: Cybersecurity, AI Agents, product specs, business operating system, automobile, consumer & MSME lending, cloud, data streaming

The Tech Panda takes a look at recent launches in the superfast field of Artificial…

1 day ago

As India’s tech sector on track to surpass $300 billion, CEO of Ness shares insights into AI’s important role 

The tech sector in India has been going from strength to strength in recent years.…

2 days ago

Unknown & uncontrolled machine identities within organizations leading to emergence of new identity security challenges

Experts are saying that organizations are inadvertently creating a new identity-centric attack surface through growing…

2 days ago

Outbound & inbound: India attracts businesses from US & Singapore while expanding to UAE, Europe & Philippines

The Tech Panda takes a look at how India has been attracting foreign businesses from…

3 days ago

The death of paper records: Will AI-driven EHRs eliminate medical errors?

Patient records have long been a collection of handwritten notes, prescription slips, and test results,…

2 weeks ago