Earnings: Amazon Tops Estimates; Posts Big Profit Jump

Amazon (NSDQ: AMZN) posted big increases in quarterly net income and revenue Thursday; sales were up 28 percent, while net income jumped 68 percent at the e-commerce giant. Both figures easily topped analysts’ forecasts.

The company continued its longstanding silence on exact sales of its Kindle e-reader, but its earnings release was laden with comments on the device’s success. Amazon said the Kindle was now its top-selling item by both unit sales and dollars. “It’s also the most wished for and most gifted,” said CEO Jeff Bezos in a statement. “We are grateful for and energized by this customer response.” Another metric: There are now more than 360,000 titles in the Kindle’s catalog, up from 320,000 just three months ago.

The big sales increase was driven largely by non-media sales. “Worldwide electronic and other general merchandise sales” jumped 44 percent to $2.36 billion, while worldwide media sales increased 17 percent to $2.93 billion. The company is also expecting another big sales jump during the crucial holiday fourth quarter. Amazon’s stock is up more than 10 percent in after-hours trading.

3Q 2008 3Q 2009 Estimate
EPS $0.27 $0.45 $0.33
Net Income $0.118M $0.199M
Revenue $4.26B $5.45B $5.03B

Release | Webcast (2 p.m. PT)