Amazon.com Shares Plunge On Weak Earnings

NEW YORK (TheStreet) –– Amazon.com (AMZN) shares plunged 5.7% to $338.10 in after-hours trading on Thursday following quarterly results that were in line with revenue estimates but missed earnings per share.

Amazon reported second-quarter revenues of $19.34 billion, right in line with analyst expectations according to Thomson Reuters and a 23% increase year-over-year. However, Amazon lost 27 cents per share, much worse than consensus, which modeled a loss of 15 cents per share. Net sales increased 23% year-over-year. In the first quarter, the Seattle-based online retailer earned 23 cents a share on $19.74 billion in revenue and net sales increased 23% year-over-year. The operating loss was $15 million this quarter, compared with $146 million in the first quarter and an operating income of $79 million a year ago. Net loss was $126 million, or 27 cents per share, compared with $7 million, or 2 cents per share, in the second quarter 2013.

According to Schaeffer's Investment Research, the options market priced in a roughly 6% move for the stock.  

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Amazon, the world's largest online retailer, issued third-quarter revenue guidance between $19.7 billion and $21.5 billion. The consensus estimate was $20.83 billion. Its operating loss guidance for the third quarter is between $810 million and $410 million, including about $410 million for stock-based compensation. This represents a huge increase from analyst expectations of $10 million and last year's $25 million.

"We continue working hard on making the Amazon customer experience better and better," said Amazon founder and CEO Jeff Bezos in the press release. He added, "Today customers all over the U.S. will begin receiving their new Fire phones - including Firefly, Dynamic Perspective, and one full year of Prime - we can't wait to get them in customers' hands."

The report did not mention the company's dispute with Hachette Book Group over e-book sales.

Amazon shares rose slightly in regular trading, up 0.13% to $358.61.

--Written by Laura Berman in New York

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