Amazon First-Quarter Earnings Meet Expectations as Revenue Rises

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In this image distributed on Tuesday, Sept. 24, 2013, Amazon.com Founder and CEO Jeff Bezos introduces the all-new Kindle Fire HDX 8.9'', right, and Kindle Fire HDX 7'' tablet in Seattle."

Image: Stephen Brashear/Associated Press

By Jason Abbruzzese2014-04-24 20:16:19 UTC

Amazon earnings met expectations, boosted by a 23% rise in sales to $19.7 billion in the first quarter of 2014.

The company logged a profit of $0.23 per share, in line with analyst estimates.

See also: 10 Predictions About the Future of Ecommerce

Amazon shares rose slightly in after-hours trading but are down 15.8% since the start of 2014.

The positive numbers help provide a financial backstop to a busy quarter for Amazon. The company launched its Fire TV streaming box, signed a deal with HBO for new content on its Prime streaming service and is reported to be moving in on the delivery service industry as well as the smartphone market.

Revenue growth is a positive sign for the ecommerce behemoth, but its margins remain extremely thin, meaning the company generates very little profit from every sale.

Amazon also scaled back expectations for its second quarter, causing some consternation among financial analysts and journalists.

More to come...

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Topics: amazon, Business, earnings