Amazon profit jumps, stock soars

NEW YORK (CNNMoney.com) -- Amazon.com Tuesday reported earnings that beat Wall Street forecasts, raised its sales guidance and announced a share buyback - news that sparked a big rally in after-hours trading of its stock.

The world's biggest online retailer reported first-quarter earnings of 26 cents a share, up from 12 cents a share a year earlier. Analysts were looking for Amazon to earn 15 cents a share, according to Reuters.

Amazon (down $0.02 to $44.75, Charts, Fortune 500) stock jumped about 8.5 percent in after-hours trading after ending little changed in regular trading on Nasdaq.

Revenue rose 32 percent to $3.02 billion, the company said. Excluding gains from favorable exchange rates, net sales rose 29 percent.

Analysts polled by First Call were looking for a 28 percent rise in revenue, to $2.9 billion. It wasn't clear if First Call's number included foreign exchange differences.

Amazon said revenue in the second quarter should come in between $2.7 and $2.85 billion, on the high side of First Call estimates.

For the full year, Amazon predicted revenue of $13.4 to $14 billion. First Call's estimate was $13.4 billion.

The company also announced a stock buy back of $500 million.