Amazon. Earth’s Biggest Bookstore Disappointment
by John Paczkowski
Posted on October 23, 2008 at 3:34 AM PT
Are online sales largely recession-resistant? Not according to Amazon’s latest earnings. Though its third-quarter profit rose 48 percent from the same period last year on revenues of $4.26 billion, the Internet retailer lowered its full-year sales outlook.
By $1 billion.
Earlier this year, Amazon (AMZN) projected $7.2 billion revenue for its fourth quarter, which includes the all important holiday shopping season. Today, it said it expects revenue for that quarter to fall somewhere between $6 billion and $7 billion.
Uh-oh.
“The holidays are not going to be pretty,” said Soleil Securities analyst Scott Tilghman. “Amazon.com isn’t immune to the economic downturn.”
Comments
It appears to me, that Amazon is intentionally trying (once again) to miss-lead the investing public by publishing less than honest press releases.
Is Amazon expecting a much bigger operating income “miss” than reported to the public??? Looks to me like they are. Check out their report $53 million “non-cash gain” from earlier in the year.
Excluded from full year operating income guidance three month ago, now, it is included in full year operating income guidance, effectively cutting the expected “miss” by more than half. Sneaky? IMO, very much so.
Now we do, now we don’t, now we do? WTF?
>From last quarter’s 8-K:
ITEM 7.01. REGULATION FD DISCLOSURE.
In Amazon.com, Inc.’s press release announcing its second quarter 2008 financial results issued earlier today, the Company provided full year 2008 expectations for operating income of between $745 million and $920 million. **These amounts exclude** the impact of the $53 million non-cash gain recognized in the second quarter 2008 on the sale of the Company’s European DVD rental assets.
http://www.sec.gov/Archives/ed.....7/d8ka.htm
>From this quarter’s press release:
Full Year 2008 Expectations
Operating income is expected to be between $716 million and $876 million, or to grow between 9% and 34% compared with 2007. **This guidance includes** …includes the impact of the $53 million non-cash gain recognized in the second quarter 2008 on the sale of the Company’s European DVD rental assets.
http://biz.yahoo.com/bw/081022......html?.v=1
Posted by Tom Marhoefer at October 23rd, 2008 at 11:18 ami think amazon will continue to improve results since it offers discounts and convenience (and free shipping)
it’s the big box retailers that need to be worried
Posted by Sam Harrison at October 23rd, 2008 at 12:33 pm