A worker sends a package on its way at Amazon.com's warehouse in Goodyear, Ariz.Ross Franklin
Amazon.com reported a drop in profit for the first quarter as its investment in new businesses ate into earnings, but the online retailer's revenue forecast beat Wall Street forecasts.
For the company's first quarter, which ended March 31, revenue was $9.857-billion (U.S.), above the average estimate of $9.57-billion and 38.2 per cent above a year earlier.
Net income in the fourth quarter was $201-million, or 44 cents per share -- down from $299-million, or 66 cents per share, a year earlier. That was far below the 61 cents expected by Wall Street, according to Thomson Reuters I/B/E/S.
The company posted an 18.2 per cent dip in operating profit for the quarter, reflecting the costs of competing in the highly promotional retail environment, with beefed-up investment in its cloud computing services.
But Amazon expects its investments to win market share to pay off. It forecast current-quarter revenue of $8.85-billion to $9.65-billion, above Wall Street expectations of $8.7-billion, according to Thomson Reuters I/B/E/S.
Amazon said it expects operating profit in the current quarter of $95-million to $245-million. In the same quarter last year, Amazon had operating profit of $207-million.
Amazon shares were down about 2 per cent following the earnings report, after slipping 1.7 per cent, or $3.12, to end at $182.30 in regular-session Nasdaq trading.