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Market Update

After the Bell: Amazon Earnings on Tap

Investors will closely watch the margins for the online retailer.

Apr 26, 2011

Online retailer Amazon.com (AMZN) reports quarterly earnings after the bell Tuesday. Analysts on average expect the firm to clock earnings per share of $0.60, compared with $0.91 in the previous quarter and $0.66 in the same quarter last year.

In January, Amazon said it expects to post revenue between $9.1 billion and $9.9 billion in the quarter.

Markets are watching for two key issues. One is whether margins continue to remain pressured; last quarter, gross margins fell 30 basis points as the firm undertook various aggressive initiatives to increase market share. The second issue involves the company's views on a proposed bill that aims to add state sales tax for online sales; currently, Amazon collects sales tax in only five states.

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