NEW YORK, Oct 26 — Amazon.com Inc forecast disappointing holiday season sales yesterday, projecting its fourth-quarter revenue growth would be the slowest in years, sending shares of the online retailer down 6 perbcent in after-hours trade.
Third-quarter sales also missed analyst estimates, and Amazon forecast operating income for the fourth quarter below estimates.
The outlook marks a potential change for Amazon, which has posted consistent and strong revenue increases for years.
The retailer is preparing for its busiest time of year, the holiday shopping season that runs from around the US Thanksgiving holiday in late November through New Year's. It forecast that fourth-quarter sales will rise between 10 percent and 20 per cent, or up to US$72.5 billion (RM301.7 billion). Analysts were expecting US$73.9 billion, according to Refinitiv data.
That would be Amazon's lowest quarterly sales growth since at least the start of 2016.
Amazon forecast operating income between US$2.1 billion and US$3.6 billion, below the US$3.87 billion expected by analysts, according to FactSet.
Amazon's chief financial officer, Brian Olsavsky, told reporters on a call that the company expected a strong holiday season.
For the third quarter, net sales rose to US$56.58 billion from US$43.74 billion a year earlier, but missed analyst estimates of US$57.1 billion, according to Refinitiv data.
Amazon's net income rose to US$2.88 billion, or US$5.75 per share, in the third quarter ended September 30, from US$256 million, or 52 cents per share, a year earlier.
Total operating expenses surged 21.8 per cent to US$52.85 billion as the company invests heavily in its Prime programme, grocery delivery from Whole Foods stores and the creation of original video content.
Revenue from Amazon Web Services, the company's fast-growing cloud services business, surged 45.7 per cent to US$6.68 billion, narrowly edging past estimates of US$6.67 billion.
Shares of Amazon were trading down at US$1,674.12. — Reuters
