Goldman Sachs Cuts Estimates and Price Target on Amazon (AMZN) After Q4 Miss and Weak Guidance

February 1, 2012 8:26 AM EST Send to a Friend
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Goldman Sachs lowered its price target on Amazon.com (NASDAQ: AMZN) from $190 to $182 and kept its Neutral rating following disappointing Q4 results and outlook after the close.

The firm said despite upside in EPS, the focus will be on the major shortfall in revenue for the second consecutive quarter.

Amazon highlighted a slowdown in growth in video games and consoles, the Thailand floods and weakness in Europe.

Goldman estimates Kindle and Kindle Fire sales hit 10.6 million, which was below their consensus of 13.9 million unites. That said, Goldman thinks the company hit the more important 6 million Kindle Fire units.

The firm lowered revenue forecast for the year by roughly $2 billion to $63.6 bilion versus the Street prior to last night at $65.3 billion. GAAP operating margin is being reduced to 0.3% for CY2012. The firm is reducing 2012/2013 GAAP EPS by 75%/40% to $0.36/$2.11 from $1.42/$3.57 versus consensus of $1.88/$3.75.

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $194.44 yesterday.


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