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The results of Amazon's holidays have even exceeded Wall Street's intoxicating expectations, but the Seattle company has warned that it might not do the same in the first quarter.
The company beat badysts' earnings and earnings forecasts. Wall Street estimated the technology giant's sales had risen nearly 20 percent and earnings per share (EPS) jumped nearly 50 percent in the fourth quarter.
But the e-commerce giant said its first-quarter sales would be lower than badysts' forecasts.
Investors seemed to take the report into account. In recent post-hours transactions, the company's shares fell by $ 3.97, or less than 1%, to $ 1,715.00.
Here's what Amazon reported and how it compares to Wall Street expectations and company results a year ago:
- Fourth quarter (Q4) sales figure: $ 72.4 billion. Analysts had forecast 71.92 billion dollars. During the same period in 2017, Amazon achieved a turnover of 60.45 billion dollars.
- Q4 EPS: $ 6.05. Wall Street had predicted $ 5.55. In the fourth quarter of the previous year, the company had earned $ 3.75 per share.
- First quarter (Q1) business revenue (company forecasts): $ 56 to $ 60 billion. Analysts had forecast $ 60.99 billion. In the first quarter of last year, Amazon achieved a turnover of 51.04 billion dollars.
- Q1 EPS (orientation): Amazon has not offered any guidance on earnings per share, but it has predicted an operating profit of between $ 2.3 billion and $ 3.3 billion. Wall Street had forecast operating profit of $ 2.99 billion for the quarter and a profit share of $ 4.43 before the report. During the same period in 2018, the company earned operating income of $ 1.9 billion and earned $ 3.27 per share.
Amazon's cloud and advertising activities drove its results
Amazon's results have once again been boosted by its cloud computing business. Amazon Web Services sales grew 45 percent from the same period last year to $ 7.4 billion. The unit recorded operating profit of $ 2.2 billion, more than two-thirds of the company's total profit and an increase of nearly 61% over the fourth quarter of 2017.
The company has also experienced strong continuous growth in its advertising activities. Amazon's "other" revenues, which consist mainly of ad sales, reached $ 3.4 billion during the quarter, up 95% from the same period in the same period last year. 39, previous year. Business growth slowed, however, from the breakneck pace of the previous three quarters, when sales grew by at least 123% year-over-year.
News from the company's retail businesses was more mixed. The company's direct online sales increased by 13% in the prior year quarter and its physical store sales – mainly from the Whole Foods chain – fell by 3% compared to the previous year. ;last year.
Meanwhile, its North American operations, comprised primarily of retail sales, but also its advertising business and third-party property sales business, grew 18% to $ 44.1 billion. of dollars. Its international retail trade has only increased by 15%.
However, Amazon's operating profit in North America increased by 33% to $ 2.3 billion. And the operating loss of its international activities, long losing money, decreased by 30% to $ 642 million.
Shares of Amazon closed their usual trading Thursday up $ 48.30, or 2.9%, to $ 1,718.73.
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