Amazon shares jump after earnings surprise

By Blake Ellis, contributing writer


NEW YORK (CNNMoney.com) -- Shares of Amazon.com jumped in after-hours trading Thursday after the online retailer easily topped Wall Street's expectations during the fourth-quarter holiday shopping season.

Net income for the three months ending Dec. 31 jumped 71% to $384 million, or 85 cents per share. Revenue rose 42% to $9.5 billion from a year ago.

Analysts polled by Thomson Reuters were looking for earnings of 72 cents a share on sales of $9 billion.

As part of the earnings release, Amazon CEO Jeff Bezos highlighted the success of his company's Kindle electronic reader. "Millions of people now own Kindles," he said in a prepared statement. "We sell 6 Kindle books for every 10 physical books."

Looking ahead, Amazon forecast first-quarter sales between $6.45 billion and $7 billion, which is well above analysts' expectations of $6.36 billion.

Amazon.com (AMZN, Fortune 500) shares rose 2% after the closing bell after adding $3.28 to end at $126.03 in regular trade. To top of page

Index Last Change % Change
Dow 24,964.75 -254.63 -1.01%
Nasdaq 7,234.31 -5.16 -0.07%
S&P 500 2,716.26 0.00 0.00%
Treasuries 2.88 -0.01 -0.38%
Data as of 8:56am ET
Company Price Change % Change
Wells Fargo & Co 59.95 0.00 0.00%
Oracle Corp 49.89 -0.82 -1.62%
Kroger Co 27.49 -1.20 -4.18%
Medtronic PLC 81.61 -1.70 -2.04%
Exelon Corp 37.68 -0.08 -0.21%
Data as of Feb 20
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