Amazon's Profit Jumps, But Sales Growth Disappoints

By Laura Stevens

Amazon.com Inc. on Thursday posted a 55% rise in fourth-quarter profit, turning its banner holiday season into a sustained streak of profitability.

However, shares of Amazon fell 3.4% to $811.50 in after-hours trading as the company's total sales fell short of analyst expectations.

For the quarter, profits rose to $749 million, or $1.54 a share, from $482 million, or $1 per share, a year earlier. Analysts surveyed by Thomson Reuters expected earnings of $1.35 per share. This marks the seventh straight profitable quarter for Amazon.

Sales of $43.74 billion, up from $35.75 billion, were within Amazon's own forecast of $42 billion to $45.5 billion but below analysts' expectations of $44.68 billion.

According to receipt-tracker Slice Intelligence, the Seattle-based online retailer was a clear winner during the holidays, capturing nearly 40% of total online holiday sales, while overall online spending surged an estimated 20%. The next closest retailer was Best Buy Co., shy of 4% of e-commerce market share.

Write to Laura Stevens at laura.stevens@wsj.com

(END) Dow Jones Newswires

February 02, 2017 16:28 ET (21:28 GMT)

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