Listen to this article

00:00
00:00

Amazon disclosed on Thursday a weaker-than-expected 22 per cent rise in quarterly sales, along with a disappointing revenue outlook, sending the e-commerce heavyweight’s shares down in after-hours trading.

Revenues hit $43.7bn in the fourth quarter, slightly lower than analysts had expected, and Amazon blamed foreign currency fluctuations for an unfavourable impact of $558m during the quarter.

The company also said that the pace of sales growth could slow during the first quarter, and issued guidance for sales between $33.25bn and $35.75bn, which would be an increase of between 14 per cent and 23 per cent from the previous year. Wall Street was forecasting revenues of $36bn.

Profits were higher than expected however, at $749m for the fourth quarter, or $1.54 per share, representing the second-most profitable quarter ever for the Seattle-based company.

During the full year of 2016, Amazon’s revenues grew 27 per cent – far faster than the US ecommerce sector as a whole – and reached $136bn.

The company’s share price fell 4 per cent in after-hours trading shortly after the earnings release.

Copyright The Financial Times Limited 2017. All rights reserved.
myFT

Follow the topics mentioned in this article

Follow the authors of this article

Comments have not been enabled for this article.