Amazon.com's (AMZN) Strong Q3 Results Proves It Is the Online Leader (Update)
AMZN Hot Sheet
EPS Growth %: -36.4%Financial Fact:
Basic earnings per share: 0.29
Today's EPS Names:
TARO, BRLI, TLB, More
(UPDATE: Added some comments from the conference call and several analysts)
Amazon.Com, Inc. (Nasdaq: AMZN) reported a third quarter EPS of $0.45, coming 12 cents above the EPS analyst estimate of $0.33, while revenue was $5.45 billion, which compares to the consensus of $5.03 billion. The EPS for the third quarter 2009 improved to $0.45 from $0.27 from the year-ago quarter. The $5.45 billion in sales for the third quarter 2009 is compared to the $4.26 billion in the year-ago quarter, up 29 percent.
News that the eBook reader, the Kindle is the best selling item on the site in both unit sales and in dollars highlighted a strong third quarter report. Amazon announced that it is now shipping the latest generation of the Kindle, which has 3G wireless capabilities in the U.S and 100 countries, and has a new lower price at $259, dropping from $279.
International sales were reported at $2.61 billion, up thirty-three percent from last year.
Founder and CEO of Amazon, Jeff Bezos said about the Kindle that "it's the most wished and gifted. We are grateful for and energized by the customer response."
Sales guidance for the 2009 fourth quarter are at $8.125 billion to $9.125 billion, above the consensus estimate of $8.11 billion. Operating income is expected to be between $300 million and $425 million, or to grow between 10% and 56% compared with fourth quarter 2008.
The site's net income increased sixty-eight percent from $118 million in the year ago quarter to $199 million in the 2009 third quarter. Operating income increased sixty-two percent to $251 million in the third quarter.
Amazon also announced a free application that will allow consumers to read the over 360,000 Kindle eBooks on their PCs.
Conference Call:
On its conference call, Amazon's CFO said that active customer accounts exceeded 98 million, up 17%, while active seller accounts were more than 1.8 million, up 24%. To see a full summary of some highlights from Amazon's call, click here
Analyst Comments:
Amazon has been upgraded by FBR Capital to Outperfom, with the price target moved from $95 to $130, citing the premium growth rate, significant competitive advantages, strong cash flow generation, and additional growth and margin expansion opportunities from Kindle, International, and Web Services
FBR analyst says, "Amazon reported strong third quarter results relative to expectations, with both accelerating top-line growth and margin expansion across almost every segment, while fourth quarter guidance came in well above consensus.”
Deutsche Bank has reiterated its Buy rating on Amazon saying, “…consistency in profit growth via operational efficiencies and purchase frequencies in the core e-commerce business, while digital and web services initiatives provide for optionality longer-term.”
Barclay’s, Benchmark and Jefferies Co. have each upgraded Amazon to a Buy rating from Hold.
Amazon continues to surge in market movement with a 23.31 percent increase to 115.23.
Amazon.Com, Inc. (Nasdaq: AMZN) reported a third quarter EPS of $0.45, coming 12 cents above the EPS analyst estimate of $0.33, while revenue was $5.45 billion, which compares to the consensus of $5.03 billion. The EPS for the third quarter 2009 improved to $0.45 from $0.27 from the year-ago quarter. The $5.45 billion in sales for the third quarter 2009 is compared to the $4.26 billion in the year-ago quarter, up 29 percent.
News that the eBook reader, the Kindle is the best selling item on the site in both unit sales and in dollars highlighted a strong third quarter report. Amazon announced that it is now shipping the latest generation of the Kindle, which has 3G wireless capabilities in the U.S and 100 countries, and has a new lower price at $259, dropping from $279.
International sales were reported at $2.61 billion, up thirty-three percent from last year.
Founder and CEO of Amazon, Jeff Bezos said about the Kindle that "it's the most wished and gifted. We are grateful for and energized by the customer response."
Sales guidance for the 2009 fourth quarter are at $8.125 billion to $9.125 billion, above the consensus estimate of $8.11 billion. Operating income is expected to be between $300 million and $425 million, or to grow between 10% and 56% compared with fourth quarter 2008.
The site's net income increased sixty-eight percent from $118 million in the year ago quarter to $199 million in the 2009 third quarter. Operating income increased sixty-two percent to $251 million in the third quarter.
Amazon also announced a free application that will allow consumers to read the over 360,000 Kindle eBooks on their PCs.
Conference Call:
On its conference call, Amazon's CFO said that active customer accounts exceeded 98 million, up 17%, while active seller accounts were more than 1.8 million, up 24%. To see a full summary of some highlights from Amazon's call, click here
Analyst Comments:
Amazon has been upgraded by FBR Capital to Outperfom, with the price target moved from $95 to $130, citing the premium growth rate, significant competitive advantages, strong cash flow generation, and additional growth and margin expansion opportunities from Kindle, International, and Web Services
FBR analyst says, "Amazon reported strong third quarter results relative to expectations, with both accelerating top-line growth and margin expansion across almost every segment, while fourth quarter guidance came in well above consensus.”
Deutsche Bank has reiterated its Buy rating on Amazon saying, “…consistency in profit growth via operational efficiencies and purchase frequencies in the core e-commerce business, while digital and web services initiatives provide for optionality longer-term.”
Barclay’s, Benchmark and Jefferies Co. have each upgraded Amazon to a Buy rating from Hold.
Amazon continues to surge in market movement with a 23.31 percent increase to 115.23.
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