Boston, MA 04\/25\/2014 (wallstreetpr) –\u00a0The largest U.S. e-retailer Amazon.com, Inc. (NASDAQ:AMZN)<\/b> expects to report loss in the current quarter. The company also expects revenue to be weaker than Wall Street estimates. That comes on the back of a profitable first quarter whereby the company reported growth in both top line and bottom line.<\/p>\n
The company expects revenue in the second quarter to come in between $18.1 and $19.1 billion. However, Wall Street expects the company to report revenue of $19.05 billion. Amazon expects to suffer operating loss of about $455 million. However, analysts estimate a profit of $210.4 million.<\/p>\n
Shares of the giant online retailer are trending down on the weak guidance.
\n<\/b><\/p>\n
First quarter performance<\/b><\/p>\n
Amazon.com, Inc. (NASDAQ:AMZN) reported first quarter revenue of $19.74 billion, suggesting an increasing of 23 percent over the same quarter a year ago. The revenue exceeded Wall Street estimate by 1.6 percent. Net income in the quarter was registered as $108 million or 23 cents per share. Net income increased about 32 percent over the same period a year earlier.<\/p>\n
Nonetheless, the company incurred huge expenses in the quarter. Expenses soared to $19.6 billion. It incurred expenses of about 15.9 billion in the same quarter last year.<\/p>\n
The North American operations realized strong performance in the first quarter whereby revenue in the market jumped 26 percent over the year ago quarter to $11.86 billion. The international market also experienced significant revenue improvement, noting double-digit increase to contribute $7.9 billion in revenue for the first quarter. However, the company experienced expenses of $7.9 million in the international business that wrote off the revenue.<\/p>\n
The huge expenses that Amazon.com, Inc. (NASDAQ:AMZN) incurred in the international market were linked to various investments in Europe and China. Therefore, the international loss did not come as a disappointment for the management, although it surprised investors and analysts.<\/p>\n
Own shipping service<\/b><\/p>\n
Amazon.com, Inc. (NASDAQ:AMZN) expects to remain on top of its game and on that note the company is working to improve its shipping experience among the customers it serves. The company is working on the development of its own shipping service that will ensure quick delivery while eliminating delays.<\/p>\n
Of late, the company received many complaints from unsatisfied customers over issues linked to shipping delays especially during the recent festive seasons. To put a stop to such complaints and to win over more customers on the basis of effective delivery services, the company is investing in its own delivery service.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 04\/25\/2014 (wallstreetpr) –\u00a0The largest U.S. e-retailer Amazon.com, Inc. (NASDAQ:AMZN) expects to report loss in the current quarter. The company also expects revenue to […]<\/p>\n","protected":false},"author":9,"featured_media":5629,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[1750,717],"stock_ticker":[],"class_list":["post-20372","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-amazon-com-inc-nasdaqamzn","tag-nasdaqamzn","entry"],"acf":[],"yoast_head":"\n