Benchmark Cuts Price Target & Estimates on Amazon (AMZN) Following Earnings

Benchmark is maintaining its Buy rating on shares of Amazon.com (NASDAQ: AMZN) following its quarterly results, but is cutting its price target from $280 to $225.

The company reported its third quarter results below expectations and also released its fourth quarter guidance relatively weak compared to what the Street was looking for. For Q4, management now forecasts sales of $16.5-$18.7 billion with operating income totaling a loss of $200 million for the quarter.

To go inline with the company's recent performance and conservative outlook for the fourth quarter, the firm estimates revenue will only grow 43 percent for fiscal 2011, down 3 percent from its previous estimate. Benchmark also has cut its 2011 and 2012 EPS estimates from $2.45 and $4.00 to $1.45 and $2.50. OIBDA is predicted to be flat on the year at $2.4 billion.

For more ratings news on Amazon.com click here and for the rating history of Amazon.com click here.

Shares of Amazon.com closed at $227.15 yesterday.

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