Business

Amazon profit misses estimates and its outlook disappoints

Amazon's warehouse in Hemel Hempstead Image copyright Getty Images

Amazon has reported a lower-than-expected third quarter profit as expenses rose, sending shares lower in after-hours trading.

The web giant also gave a disappointing fourth-quarter revenue forecast.

Quarterly revenues rose 29%, in line with expectations, while Amazon said net profit jumped $173m to $252m (£207m) compared with the same period last year.

Shares fell more than 5% in after-hours trading.

Total operating expenses rose 31.5% to $10.94bn as the company invested in its cloud computing business, Amazon Web Services, expanded its Prime programme internationally as well as its warehouse and delivery infrastructure and increased its original video output.

Amazon forecast sales of between $42bn and $45.5bn for the last three months of the year, which includes the Christmas shopping season.

Analysts had expected fourth-quarter sales of $44.58bn.

Third quarter revenues were boosted by net sales rising to $32.7bn from $25.3bn the year before.

Sales were helped by its Prime Day annual shopping festival, strong back-to-school shopping and its cloud services business.

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