Amazon Reports Large Increase in 3Q Sales

Despite 313% jump, stock drops in after-hours trading
By Doug Sweeney,  Newser Staff
Posted Oct 24, 2007 12:30 AM CDT
An employee stacks boxes containing copies of J.K. Rowling's book, "Harry Potter and the Deathly Hallows," inside the fulfillment center in Fernley, Nev., Monday, July 16, 2007....   (Associated Press)
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(Newser) – Amazon reported strong increases in third-quarter sales, citing once again its low pricing and free shipping for success. But investors may have been hoping for an even larger increase, because Amazon's share prices fell over 8% in after-hours trading. The company netted a profit of $80 million for the quarter, an increase of 313% over last year’s figures, according to CNNMoney.

Amazon beat analysts’ estimates of 18 cents per share profit by a penny, but other factors may have disappointed.  "The stock's guidance for the year was a little below what the Street expected," a Lazard Capital analyst said. Meanwhile, another analyst noted "margin contraction," saying that with increased selection and lower prices ahead of the holiday season, "you end up taking a bigger hit."