SEATTLE, Washington, Oct 21 (AFP) - Internet retailer Amazon.com announced Thursday quarterly net profit soared 28.9 percent, boasting of a successful campaign to cut prices and give free shipping.
But the results fell short of market expectations, pounding the share price in after-hours trade.
Net profit leapt 28.9 percent from a year earlier to 54.1 million dollars in the three months to September 30.
Earnings per share, after stripping out one-off items, climbed to 17 cents a share -- one cent below forecasts of analysts polled by research group First Call -- from 11 cents a year ago.
Sales surged 28.9 percent to 1.46 billion dollars -- just below analysts' forecast for revenue of 1.47 billion dollars.
"Our decision to put dollars into lower prices and free shipping instead of TV advertising continues to be embraced by customers," said founder and chief executive Jeff Bezos.
"Customer adoption of free shipping hit another record high this quarter," he said in a statement.
Amazon shares had climbed 1.12 dollars, or 2.92 percent, to close at 39.47 dollars.
But when the result was announced after the market close, investors punished the stock, sending Amazon shares down 2.73 dollars, or 6.92 percent, to 36.74 dollars in after-market trade.
For the fourth-quarter, Amazon said it expected sales of 2.295 billion to 2.545 billion dollars.
Operating income was expected to be between 137 million and 197 million dollars, after income of 81 million dollars in the third quarter, the company said.
10/21/2004 20:41 GMT - AFP