Amazon will release its third quarter results. The analysts expect the company's quarterly revenue will increase significantly, mainly due to the driving force of the strong sales. However, affected by the expanding scale of expenditure of the company, its net profit could decline.
Amazon's business includes electronic products and daily necessities, books, CD, DVD and other media products. These businesses have been strong. It is expected that the third quarter is no exception.
Amazon may have implied about the ales momentum of Kindle e-reader, but it is not likely to disclose specific details because the company has never done so. Amazon says the Kindle is its best-selling product. The company said earlier this year that the sales of the e-book have exceeded paper books. Amazon may release the sales forecast of the latest tablet Kindle Fire. Kindle Fire will be on sale in November to welcome the holiday season.
The analysts said that in view of that Amazon is the world's leading online retailer, so the performance of the company will be the season's performance benchmark of other online retailers. The analysts expect the third-quarter earnings per share of Amazon to be 25 cents and the revenue to be $ 10.91 billion. The company had estimated in July that its third-quarter revenue to be 10.3 to 11.1 billion U.S. dollars. In the third quarter of 2010, Amazon's profit was $ 231 million, 51 cents per share. Its revenue was 7.56 billion U.S. dollars.
Its third-quarter net profit of this year is $ 115.8 million. According to the analysts' average estimates, its net profit declined by 50% than a year ago. As Amazon's Kindle Fire, a 7-inch touch-screen tablet PC, has a loss on sales, while the government is strongly urging it to hand over the business tax, the company will face greater pressure in the next year.
Its operating margin is expected to decline from 3.54% to 1.33% and the gross margin is expected to decline from 23.5% to 23.1%. The analysts said that if Amazon raises product price to pay the state's sales tax, then the online retailer's profit in 2012 may drop 19%.
Amazon's business includes electronic products and daily necessities, books, CD, DVD and other media products. These businesses have been strong. It is expected that the third quarter is no exception.
Amazon may have implied about the ales momentum of Kindle e-reader, but it is not likely to disclose specific details because the company has never done so. Amazon says the Kindle is its best-selling product. The company said earlier this year that the sales of the e-book have exceeded paper books. Amazon may release the sales forecast of the latest tablet Kindle Fire. Kindle Fire will be on sale in November to welcome the holiday season.
The analysts said that in view of that Amazon is the world's leading online retailer, so the performance of the company will be the season's performance benchmark of other online retailers. The analysts expect the third-quarter earnings per share of Amazon to be 25 cents and the revenue to be $ 10.91 billion. The company had estimated in July that its third-quarter revenue to be 10.3 to 11.1 billion U.S. dollars. In the third quarter of 2010, Amazon's profit was $ 231 million, 51 cents per share. Its revenue was 7.56 billion U.S. dollars.
Its third-quarter net profit of this year is $ 115.8 million. According to the analysts' average estimates, its net profit declined by 50% than a year ago. As Amazon's Kindle Fire, a 7-inch touch-screen tablet PC, has a loss on sales, while the government is strongly urging it to hand over the business tax, the company will face greater pressure in the next year.
Its operating margin is expected to decline from 3.54% to 1.33% and the gross margin is expected to decline from 23.5% to 23.1%. The analysts said that if Amazon raises product price to pay the state's sales tax, then the online retailer's profit in 2012 may drop 19%.
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