US Markets

EARNINGS-Amazon's holiday-quarter sales forecast misses estimates, shares fall 8%

Credit: REUTERS/Mike Segar

Amazon.com Inc forecast fourth-quarter revenue well below analysts' estimates on Thursday as the world's biggest online retailer faces fierce competition from Walmart as well as other online retailers, sending its shares down 8%.

Adds shares, compares with estimates, details

Oct 24 (Reuters) - Amazon.com Inc AMZN.O forecast fourth-quarter revenue well below analysts' estimates on Thursday as the world's biggest online retailer faces fierce competition from Walmart WMT.N as well as other online retailers, sending its shares down 8%.

The company forecast net sales in the range of $80.0 billion to $86.5 billion for the crucial holiday quarter. Analysts were expecting revenue of $87.37 billion, according to IBES data from Refinitiv.

The downbeat outlook reinforces worries that the ongoing U.S.-China trade spat is hurting the U.S. retail industry. Holiday sales typically generate a majority of retailers' sales and profit.

Amazon also said it expects current-quarter operating income to be between $1.2 billion and $2.9 billion, while analysts were expecting $4.19 billion, according to research firm FactSet.

Net sales rose to $69.98 billion from $56.58 billion in the third quarter ended Sept. 30, beating estimates of $68.81 billion, according to IBES data from Refinitiv.

The company's net income fell to $2.13 billion, or $4.23 per share, during the quarter, from $2.88 billion, or $5.75 per share, a year earlier.

Analysts were expecting a profit of $4.62 per share, according to IBES data from Refinitiv.

(Reporting by Akanksha Rana in Bengaluru and Jeffrey Dastin in San Francisco Editing by Saumyadeb Chakrabarty)

((akanksha.rana@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1130; Reuters Messaging: akanksha.rana.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More