Earnings: Amazon

Great numbers from online retailer Amazon:

Net sales increased 28% to $5.45 billion in the third quarter, compared with $4.26 billion in third quarter 2008. Excluding the $41 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 29% compared with third quarter 2008.

Net income increased 68% to $199 million in the third quarter, or $0.45 per diluted share, compared with net income of $118 million, or $0.27 per diluted share, in third quarter 2008.

CEO Jeff Bezos made a comment about its best selling Kindle:

“Kindle has become the #1 bestselling item by both unit sales and dollars – not just in our electronics store but across all product categories on Amazon.com. It’s also the most wished for and the most gifted. We are grateful for and energized by this customer response.”

To stave off competition, it also brought down the price of its International Kindle, from $279 to $259 – the same price as Barnes & Noble’s Nook.

The results were affected by strong showing from its electronics and general merchandise sales, including TVs and office supplies, which now account for 43% of Amazon’s sales as well as from media sales.  Each showed 44% and 17% increase in revenue, respectively.

The company also believes Q4 sales to grow between $8.125 billion and $9.125 billion, or between 21% and 36% compared with Q4 2008. Meanwhile, operating income is expected to grow between 10% and 56% from last year or between $300 million and $425 million.

Source: Amazon

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