Earnings watch: Amazon, Sprint
Amazon disappoints Wall Street with weaker-than-expected quarterly results. Sprint reports a smaller-than-expected loss.
By Andrea Tse, TheStreet
Amazon (AMZN) was falling Wednesday after the online retailer reported disappointing third-quarter results Tuesday.
Amazon posted earnings of $63 million, or 14 cents a share, on sales of $10.88 billion. The average estimate was for earnings of 24 cents on revenue of $10.95 billion. For the fourth quarter, Amazon said it could post an operating loss of as much $200 million or a profit of as much as $250 million with sales ranging from $16.45 billion to $18.65 billion. Analysts had expected net income of about $394 million, or 85 cents, on sales of $18.15 billion.
Sprint(S), the No. 3 wireless service provider, posted a third-quarter loss of $301 million, or 10 cents a share, narrowing the previous year's loss. Revenue rose 2% to $8.33 billion. Analysts expected a loss of 22 cents a share on revenue of $8.38 billion. Sprint said the "iPhone is expected to be accretive for Sprint, and iPhone users are expected to be among Sprint's most profitable customers."
Aerospace giant Boeing (BA) raised its full-year earnings forecast to between $4.30 and $4.40 a share after reporting third-quarter earnings of $1.46 per share, which beat the average analyst estimate of $1.10 a share.
ConocoPhillips (COP) reported third-quarter adjusted earnings of $2.52 a share, beating the Wall Street target of $2.18 a share.
Ford (F) said its third-quarter net income fell by $38 million year over year to $1.6 billion, or 41 cents a share. Adjusted profit came in at 46 cents a share, beating the average analyst estimate of 44 cents. The company didn't say when it might reinstitute a dividend.
WellPoint (WLP), the largest health insurer based on membership, said its third-quarter net income was $683.2 million, or $1.90 a share, including net investment gains of 13 cents. A year earlier, net income was $739.1 million, or $1.84 a share, including net investment gains of 10 cents. The company reported adjusted net income of $1.77 a share, topping analysts' estimates, as it added 169,000 members in the quarter.
Business software maker SAP (SAP) said net profit jumped to 1.25 billion euros ($1.7 billion) in the third quarter as the company reduced the amount of money set aside for a possible judgment against it in a lawsuit brought by Oracle (ORCL).
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Why are stronger numbers considered bad news? Investors are worried about the impact on inflation and interest rates.
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