ReutersOct 25, 2019 02:15:08 IST
(Reuters) - Amazon.com Inc forecast fourth-quarter revenue well below analysts' estimates on Thursday as the world's biggest online retailer faces fierce competition from Walmart as well as other online retailers, sending its shares down 8%.
The company forecast net sales in the range of $80.0 billion to $86.5 billion (£62.23 billion) for the crucial holiday quarter. Analysts were expecting revenue of $87.37 billion, according to IBES data from Refinitiv.
The downbeat outlook reinforces worries that the ongoing U.S.-China trade spat is hurting the U.S. retail industry. Holiday sales typically generate a majority of retailers' sales and profit.
Amazon also said it expects current-quarter operating income to be between $1.2 billion and $2.9 billion, while analysts were expecting $4.19 billion, according to research firm FactSet.
Net sales rose to $69.98 billion from $56.58 billion in the third quarter ended Sept. 30, beating estimates of $68.81 billion, according to IBES data from Refinitiv.
The company's net income fell to $2.13 billion, or $4.23 per share, during the quarter, from $2.88 billion, or $5.75 per share, a year earlier.
Analysts were expecting a profit of $4.62 per share, according to IBES data from Refinitiv.
(Reporting by Akanksha Rana in Bengaluru and Jeffrey Dastin in San Francisco; Editing by Saumyadeb Chakrabarty)
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