by Kyle Woodley | January 31, 2012 4:49 pm
Amazon (NASDAQ:AMZN) was punished in after-hours trading Tuesday after reporting significantly lower earnings and saying it could report a loss in the first quarter.
Amazon reported fourth-quarter earnings of $117 million (38 cents per share), down 57% from the year-ago period. While down, earnings were more than double analyst expectations of 17 cents per share. Revenue of $17.4 billion was up 34% from last year, but short of expectations for $18.3 billion.
Amazon also forecast Q1 earnings between $100 million and -$200 million. Analysts previously were expecting a $426 million profit.
AMZN shares, which had gained more than 1% in the lead-up, were down about 8% shortly after Tuesday’s closing bell.
Falling earlier Tuesday was Netflix (NASDAQ:NFLX), which dropped more than 4% on news that British Sky Broadcasting Group — commonly known as BSkyB — was launching its own streaming video service. BSkyB’s service is a response to the American streaming giant, which recently began offering its own programming in the U.K.
However, Amazon and Netflix paled in comparison to RadioShack (NYSE:RSH), which suffered its worst drop in more than 12 years on poor Q4 earnings and a suspension of its share buyback program.
RSH shares fell about 30% after the company reported earnings of 11 cents per share, down from 13 cents in the year-ago period and far shy of analyst expectations for 37 cents. RadioShack also said it would suspend stock repurchases for “the near-term.” Big-box electronics competitor Best Buy (NYSE:BBY) also reacted to the news with a 5.6% decline of its own.
Kyle Woodley is the assistant editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here.
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