Amazon rewards Investors with better than expected profit

Amazon rewards Investors with better than expected profit

On Thursday, Amazon reported a $214-million profit or 45 cents a share, on revenue of $29.33 billion, beyond the estimate of many analysts for the holiday season. Market analysts had estimated just 17 cents a share on $29.68 billion in revenue.

CEO Jeff Bezos said that in the quarter, the company has got more than 50% boost in the Prime membership. The company has not released the exact numbers for Prime memberships.

It seems like Amazon has learnt a lesson from the mistakes it has made in 2013. Last year, some shipments reached the doorsteps of customers after Christmas. This happened due to the backlog of packages by Amazon's delivery partners FedEx and UPS.

After two consecutive quarters of losses, the company has finally managed a profit. This profit has highly influenced the investors. The stock closed at $311.78, up $7.87, or more than 2%.

In the ongoing quarter, the company is expecting a 10% growth in the sales. The increased sales will be between $20.9 billion and $22.9 billion.

In 2013, Amazon has reported $146 million in operating income and it has forecasted that the range for the operating income in the current quarter could range from a loss of $450 million to a profit of $50 million.

Scot Wingo, CEO of Channel Advisor, said that the largest online retailer of the world changed its delivery plans in 2014. Christmas delivery cut off dates were also extended by them.

"They did a really good job of extending the holidays and not repeating the debacle of last year", Wingo said.

Prime is an important component of Amazon's strategy. According to a study done in the fourth quarter of 2014, Prime customers have spend much more on Amazon as compared to the Non-Prime shoppers.

User login

You May Have Missed...

Elon Musk
Thu, 02/19/2015 - 04:14

Tesla, the electric car maker, and solar panel installer SolarCity have put up a bad performance in the stock market during the past six months....

Nigeria Update

World Malaria Day Draws Attention over Need for Renewed Commitment
Sat, 04/26/2014 - 12:48

The world commemorated the Annual Malaria Day on April 25 and the attention was drawn towards...

Economy Watch

Wed, 02/04/2015 - 03:22

Euro-area companies have increased hiring as manufacturing and services activity from Germany to...

Health Tonight

New study on penis size may provide answers to men
Thu, 03/05/2015 - 13:39

A new study asking "Am I Normal?" analyzed penis size for 15,000 men and it reveals that a...

Science Tonight

Turtles return to Gahirmatha beach for nesting afters years
Mon, 03/16/2015 - 13:49

Forest officials have said that a group of Olive Ridley female turtles, who were tagged for...

UK News

Ball looking forward to buy Rexam
Thu, 02/19/2015 - 09:16

US packaging company Ball is approaching a deal to buy British drinks can maker Rexam. The...


Astrazeneca’s Experimental Drug to Treat COPD Fails to Reduce Acute Exacerbation
Mon, 09/08/2014 - 13:17

On Monday, AstraZeneca PLC announced that Phase IIa study of benralizumab, an experimental drug...

US News

Astronomers witness Multiple-Star System in Initial Stage of Formation
Sun, 03/15/2015 - 05:08

Astronomers said that for the first time they have observed a multiple-star system in the first...

Technology Tonight

Microsoft announces Lumia 435 and Lumia 532 pricing in India
Tue, 02/17/2015 - 11:48

On Monday, Microsoft announced the pricing of its Lumia 435 and Lumia 532 smartphones in India....