Amazon earnings beat expectationsAmazon reported strong quarterly earnings this week.

Amazon, the world's largest online retailer, beat analysts' revenue estimates in its latest fiscal quarter, Bloomberg reports. The Seattle, Washington-based company said sales during the first three months of this year hit $13.2 billion, representing a 34 percent climb from the same period the year prior. Analysts had estimated sales would rise to $12.9 billion, according to the news provider.

Amazon's net income fell to $130 million. The online giant has aggressively spent to expand its network of distribution centers and warehouses, and analysts contend it is likely absorbing a loss on the sale of each of its new Kindle Fire tablets. However, shareholders have long forgiven Amazon for its tight operating margins, as it has continually posted strong sales and revenue figures.

Over the past decade, Jeff Bezos, the company's chief executive, has shown a willingness to make long-term bets as he eyes future growth. Though Amazon is likely losing money on the sale of the Kindle Fire, experts said the retailer is poised to more than recoup that loss over the next few years, as consumers purchase media and other products through the company's flagship ecommerce store.

As a leader in strategic sourcing and supply chain management, Amazon is continuing to eye future growth, even as it faces mounting competition from both brick-and-mortar and Internet-based firms. Amazon's latest warehouses throughout the U.S. are designed to deliver products even faster to customers, a move analysts assert will also help the company continue to fuel sales growth.

Amazon shipped 4.7 million Kindle Fires in its fourth quarter, although it did not reveal data for its most recent fiscal period. The company is still fighting for market share against Apple, whose iPad is still the dominant player in the segment. According to an analysis from IDC, Amazon's Kindle Fire commands 16.8 percent of the tablet market, making it the second most popular choice among shoppers.

Industry experts said Amazon's strong earnings suggested the company would likely maintain its pace of growth throughout the year. JPMorgan Chase & Co. analyst Douglas Anmuth said Amazon's strategy has continued to bolster earnings. He noted he expects the company's profit margins to grow during its current fiscal year.

"Underlying user growth trends remain strong," he said. "We project margins to improve in the back half of the year."

Amazon's operating cash flow climbed 1 percent between January and March, the company said, rising to $3.05 billion. Bezos said the company is positioned for long-term growth, as he defended Amazon's decision to continually invest in new technologies and expand its system of distribution facilities. He also stressed the success of the company's Kindle Store, the dominant player in the eBook segment.

"I'm excited to announce that we now have more than 130,000 new, in-copyright books that are exclusive to the Kindle Store – you won't find them anywhere else. They include many of our top bestsellers – in fact, 16 of our top 100 bestselling titles are exclusive to our store," he said in a statement.

The company's Kindle Fire remained its top selling and most gifted product in its online store in the first quarter, according to Bezos. He added Amazon's sales in North America surged 36 percent from 2011, rising to $7.43 billion, underscoring how the retailer is continuing to experience growth even amid a tepid economic climate.

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