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AMAZON UP 12% ON UPBEAT INCOME AND SALES

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AMAZON UP 12% ON UPBEAT INCOME AND SALES

Jan 30 2015, 11.26am GMT

STOCK.com

Amazon shares rose 12% after hours to 312.36 with increases on sales, revenue and earnings.

Image: istock © littleny

Amazon it seems has turned one corner to give positive earnings and revenue, only to come to the next corner as the internet retailer reports expectations on the current quarter operating income as between a loss of $450 million and a positive figure of $50 million, compared to $146 million in first quarter 2014.

However, Amazon investors can take mixed relief in this quarter’s earnings:

Revenue at $29.33 billion, under analysts' estimates of $29.67 billion, but a rise of 15% year-on-year.

Earnings were reported at $0.45 a share, or $214 million, beating Wall Street expectations of only $0.17 a share, but are down from $0.51 a share, or $239 million, a year earlier.

Highlights from Amazon earnings Q4 report:

  • Fourth Quarter Sales up 15% to $29.33 billion.
  • Operating expenses rose from $25.1 billion to $28.7 billion.
  • Net sales increased 15% to $29.33 billion in the fourth quarter, compared with $25.59 billion in fourth quarter 2013. Net sales increased 18% compared to fourth quarter 2013.
  • Operating cash flow increased 25% to $6.84 billion for the past twelve months, compared with $5.47 billion for the twelve months ended December 31, 2013.
  • Free cash flow decreased to $1.95 billion for the last twelve months, compared with $2.03 billion for the twelve months ended December 31, 2013.
  • Net sales increased 20% to $88.99 billion, compared with $74.45 billion in 2013.
  • Operating income was $178 million, compared with operating income of $745 million in 2013.
  • Net loss was $241 million, or $0.52 per diluted share, compared with net income of $274 million, or $0.59 per diluted share, in 2013.

The major drivers of the earnings were the lucrative market of Amazon Prime customers which rose by 53% but expenses for the Prime service rose to $1.3 billion spent on building video content. Amazon cloud services boosted margins as did the resolution with publisher Hachette, pushing North American operating income to rise from $88m last quarter to $1bn this quarter, whilst the international division reported an operating profit of $20m after a loss in the previous quarter.

MT4 chart: Amazon

amazon on stock.com

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