Amazon profits up 48%, shares down on forecast

Yesterday announced a 48% increase in profits in the third quarter, but lowered its predictions for the full year. The company said its profit included a US$15 million foreign-currency benefit, while revenue rose almost 31% to US$4.26 billion, according to an Associated Press report.

The report added expects its 2008 revenue to be between US$18.46 billion and US$19.46 billion (€14.32 billion and €15.21 billion). Apparently that fell below average analysts' expectation of US$19.52 billion established by Thomson Reuters.

In July, Amazon predicted sales of US$19.35 billion to US$20.10 billion.

The report also highlighted Amazon's increased revenue from shipping (including earnings from Amazon's express delivery service, Amazon Prime, and its third-party shipping program, Fulfillment by Amazon) which rose 12% to US$191 million.