Amazon.com has posted quarterly profits that handily beat Wall Street estimates.
It added that holiday sales could come in far above expectations, sending its shares up 15 percent to their highest level in nearly a decade.
The world's largest online retailer also said its Kindle electronic reader was its top item in both unit sales and dollars across all of its product categories.
"It's a strong September quarter," said Colin Gillis of Brigantine Advisors. "They beat on the top and they beat on the bottom ... investors are going to be heartened that consumers are still spending."
Amazon's net profit in its third quarter was USD 199 million, or 45 cents per share, far above the average analyst estimate of 33 cents per share.
Year-ago profit was USD 118 million, or 27 cents per share.
Revenue rose 28 percent to USD 5.45 billion, the Seattle-based company said, compared to the Wall Street average estimate of USD 5.03 billion. Citibank's Mark Mahaney said Amazon must be taking market share based on its results.
"Amazon should be extremely well prepared for Q4 -- facing shrinking/destocking offline retail competitors, with THE must-have eReader, and a significantly strengthening presence," wrote Mahaney in a note.
Wall Street expectations for Amazon have been high, and expected it to outpace the market during the crucial holiday season. But a growing price war with Wal-Mart means that margins could be at risk in coming months.
For the key holiday fourth quarter, Amazon said it sees revenue to range between USD 8.125 billion and USD 9.125 billion, compared with analysts' expectations for USD 8.13 billion.
"The problem with the guidance is, it is so wide you could drive a truck through it," said Gillis, adding Amazon had a history of providing a wide-ranging forecast.
To maintain its dominance in e-readers, Amazon has cut the price of its Kindle to USD 259 from USD 299 and introduced a global version.Online retailer Amazon.com has reported a 69 percent surge in third quarter earnings as sales surged across all product lines and its Kindle electronic book reader was a hit with customers.The Seattle-based pioneer of web-retailing Thursday said it earned $199 million in the third quarter compared to $118 million in the year-ago quarter. Revenue rose 28 percent to $5.45 billion.'Kindle has become the No. 1 best-selling item by both unit sales and dollars - not just in our electronics store but across all product categories on Amazon.com,' Amazon founder and CEO Jeff Bezos said in the statement.For the fourth quarter, which includes the key holiday season, Amazon expects revenue of $8 to $9 billion compared to analysts forecasts of $8.13 billion.The company said North American sales were up 23 percent from the same quarter last year, to $2.84 billion. International sales were $2.61 billion, an increase of 23 percent from 2008.Sales of book, movies and other media grew by 17 percent to $2.93 billion, while electronics sales jumped 44 percent to $2.36 billion.
It added that holiday sales could come in far above expectations, sending its shares up 15 percent to their highest level in nearly a decade.
The world's largest online retailer also said its Kindle electronic reader was its top item in both unit sales and dollars across all of its product categories.
"It's a strong September quarter," said Colin Gillis of Brigantine Advisors. "They beat on the top and they beat on the bottom ... investors are going to be heartened that consumers are still spending."
Amazon's net profit in its third quarter was USD 199 million, or 45 cents per share, far above the average analyst estimate of 33 cents per share.
Year-ago profit was USD 118 million, or 27 cents per share.
Revenue rose 28 percent to USD 5.45 billion, the Seattle-based company said, compared to the Wall Street average estimate of USD 5.03 billion. Citibank's Mark Mahaney said Amazon must be taking market share based on its results.
"Amazon should be extremely well prepared for Q4 -- facing shrinking/destocking offline retail competitors, with THE must-have eReader, and a significantly strengthening presence," wrote Mahaney in a note.
Wall Street expectations for Amazon have been high, and expected it to outpace the market during the crucial holiday season. But a growing price war with Wal-Mart means that margins could be at risk in coming months.
For the key holiday fourth quarter, Amazon said it sees revenue to range between USD 8.125 billion and USD 9.125 billion, compared with analysts' expectations for USD 8.13 billion.
"The problem with the guidance is, it is so wide you could drive a truck through it," said Gillis, adding Amazon had a history of providing a wide-ranging forecast.
To maintain its dominance in e-readers, Amazon has cut the price of its Kindle to USD 259 from USD 299 and introduced a global version.Online retailer Amazon.com has reported a 69 percent surge in third quarter earnings as sales surged across all product lines and its Kindle electronic book reader was a hit with customers.The Seattle-based pioneer of web-retailing Thursday said it earned $199 million in the third quarter compared to $118 million in the year-ago quarter. Revenue rose 28 percent to $5.45 billion.'Kindle has become the No. 1 best-selling item by both unit sales and dollars - not just in our electronics store but across all product categories on Amazon.com,' Amazon founder and CEO Jeff Bezos said in the statement.For the fourth quarter, which includes the key holiday season, Amazon expects revenue of $8 to $9 billion compared to analysts forecasts of $8.13 billion.The company said North American sales were up 23 percent from the same quarter last year, to $2.84 billion. International sales were $2.61 billion, an increase of 23 percent from 2008.Sales of book, movies and other media grew by 17 percent to $2.93 billion, while electronics sales jumped 44 percent to $2.36 billion.
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