Amazon Shares Plunge on Forecast

The company gets cautious for the fourth quarter.
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(AMZN) - Get Report

edged past Wall Street earnings estimates for the third quarter but offered a cautious outlook for the fourth quarter.

Shares of Amazon plunged more than 13% in recent after-hours trading to $43.29. The stock has been pummeled in recent days over fear of a slowdown in consumer spending.

The company posted a 48% increase in profit, climbing to $118 million in the third quarter, or 27 cents a share, from $80 million, or 19 cents share, a year ago. The results include a benefit of $15 million related to net foreign currency remeasurements.

Analysts surveyed by Thomson Reuters had predicted earnings of 25 cents a share.

Amazon's sales in the third quarter were up 31% to $4.26 billion, compared with $3.26 billion a year ago. That came at the low end of the company's guidance and fell short of Wall Street estimates of $4.28 billion.

Excluding the $80 million favorable impact from year-over-year changes in foreign-exchange rates throughout the quarter, sales grew 28% compared with a year ago.

For the fourth quarter, Amazon expects revenue in the range of $6 billion and $7 billion. That was shy of Wall Street estimates for $7.05 billion.

"We remain relentlessly focused on delivering value to customers through lower prices, improved selection and our free shipping offers, including Amazon Prime," said Jeff Bezos, founder and CEO of Amazon.