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Amazon third-quarter profit up 69 percent

Posted on Friday, October 23 2009 @ 00:19:55 CEST by

Amazon surprised the market with third quarter earnings of $199 million, or 45 cents per share, on revenue of $5.45 billion. Wall Street analysts predicted earnings of 33 cents per share on revenue of $5.02 billlion, and the company is also more optimistic about the fourth quarter than analysts forecasted. Amazon's shares are up 14.50 percent in after-hours trading to $107.00.
“Kindle has become the #1 bestselling item by both unit sales and dollars – not just in our electronics store but across all product categories on Amazon.com. It’s also the most wished for and the most gifted. We are grateful for and energized by this customer response,” said Jeff Bezos, founder and CEO of Amazon.com. “Earlier this week we began shipping the latest generation Kindle. Its 3G wireless works in the U.S. and 100 countries, and we’ve just lowered its price to $259.”
Earnings are up 69 percent compared to the same period last year, but even after this earnings growth the company is still trading at a P/E of around 60.



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