Inc. Revenue And Outlook Miss Estimates, Shares Fall

The Seattle-based retail superpower reported Q4 EPS of $1.54, which was $0.12 better than the Wall Street consensus of $1.42. Revenues rose 22.4% from last year to $43.74 billion, missing analysts’ $44.69 billion view, however.

Amazon’s North American sales rose 22% in the latest period to $26.24 billion, while operating income gained 28% to $816 million. Amazon Web Services (AWS) sales surged 47% from last year to $3.53 billion with operating income in that unit jumping 60% to $926 million.

On a sour note, AMZN offered weaker than expected guidance for the current first quarter. Q1 revenues are seen ranging from $33.25 to $35.75 billion, versus Wall Street’s $36 billion view. Operating income was forecast between $250 million and $900 million, a big downturn from last year’s first quarter when it booked $1.1 billion.

The company touted the new features of its popular Prime membership service via press release:

“Prime members can now choose from over 50 million items with free two-day shipping — up 73% since 2015. Prime Video is now available in more than 200 countries and territories. Prime Now added 18 new cities, which means millions more members now get one and two hour delivery. New benefits were also added to the list, like Prime Reading, Audible Channels for Prime, Twitch Prime and more. And customers noticed — tens of millions of new paid members joined the program in just this past year.”, Inc. shares fell $31.21 (-3.72%) to $808.74 on Thursday afternoon. Prior to today’s report, AMZN had gained 12.04% year-to-date, versus a 1.90% rise in the benchmark S&P 500 index during the same period.

AMZN currently has a POWR Rating of A (Strong Buy), and is ranked #3 of 44 stocks in the Internet category.

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