Amazon Posts Modest Q1 Performance
Proving a clear market demand for its services, Amazon reported net sales of $13 billion for the first quarter of the year -- up 34% year-over-year. Yet, the ecommerce giant also revealed $130 million in net income, or $0.28 per diluted share, for the quarter, which is down 35% year-over-year.
“Altogether, [first quarter] earnings were a plus for Amazon following a disappointing fourth quarter, and they ultimately beat Wall Street’s expectations of a first-quarter profit of seven cents a share on revenue of $12.9 billion,” Reuters reports. All told, Amazon finished the first quarter with $192 million in operating income -- down from $322 million in the first quarter of 2011.
Ecommerce side, Amazon’s Kindle Fire tablet device remains the company’s bestselling product. As usual, however, Amazon refrained from revealing specific sales numbers for its Kindle product lineup. Going forward, for the second quarter of the year, Amazon said Friday that it expects to earn between $11.9 billion and $13.3 billion in revenue, which would represent up to 34% year-over-year growth.