Amazon.com (AMZN) Shares Rally Sharply Amid Strong Q1 Sales; Investors Shrug at Q2 Guidance
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Shares of Amazon.com (Nasdaq: AMZN) are now up more than 14 percent in Thursday's after-hours session following blow-out first-quarter results.
Sales for the quarter ended March 31st, 2012 rose a sharp 34 percent from $9.86 billion in the same period last year to $13.185 billion. Analysts were looking for the online retailer to post quarterly sales of $12.9 billion.
Sales to North America were up 36 percent to $7.43 billion, while International sales rose 31 percent to $5.76 billion.
Worldwide Media sales were up 19 percent to $4.71 billion and Electronics and Other Merchandise sales were up 43 percent to $7.97 billion.
Net income fell 35 percent year over year to $130 million. Amazon.com reported net income of $177 million last quarter. Per-share profit was down from 44 cents per share in the year-ago quarter to 28 cents per share. The Street was expecting EPS of just 7 cents from the company.
Operating cash flow increased 1 percent to $3.05 billion for the trailing twelve months, compared with $3.03 billion for the prior-year period. Free cash flow decreased 39% to $1.15 billion for the trailing twelve months, compared with $1.90 billion previously.
"I’m excited to announce that we now have more than 130,000 new, in-copyright books that are exclusive to the Kindle Store – you won’t find them anywhere else. They include many of our top bestsellers – in fact, 16 of our top 100 bestselling titles are exclusive to our store," said Jeff Bezos, founder and CEO of Amazon.com. "If you’re an Amazon Prime member, you don’t even need to buy these titles – you can borrow them for free – with no due dates – from our revolutionary Kindle Owners’ Lending Library. The Kindle Owners’ Lending Library is heavily used by Kindle owners, and it has extremely unusual features that both authors and customers love. Every time you borrow a book, the author gets paid – and we have an inexhaustible supply of each title so you never have to wait in a queue for the book you want. Kindle is the bestselling e-reader in the world by far, and I assure you we’ll keep working hard so that the Kindle Store remains yet another reason to buy a Kindle!"
Amazon said it is looking for second-quarter sales of $11.9 million to $13.3 billion, which compares to the Street estimate of $12.82 billion, and an operating loss of $260 million to a gain of $40 million. Analysts are currently expecting the company to report quarterly EPS of 20 cents.
Sales for the quarter ended March 31st, 2012 rose a sharp 34 percent from $9.86 billion in the same period last year to $13.185 billion. Analysts were looking for the online retailer to post quarterly sales of $12.9 billion.
Sales to North America were up 36 percent to $7.43 billion, while International sales rose 31 percent to $5.76 billion.
Worldwide Media sales were up 19 percent to $4.71 billion and Electronics and Other Merchandise sales were up 43 percent to $7.97 billion.
Net income fell 35 percent year over year to $130 million. Amazon.com reported net income of $177 million last quarter. Per-share profit was down from 44 cents per share in the year-ago quarter to 28 cents per share. The Street was expecting EPS of just 7 cents from the company.
Operating cash flow increased 1 percent to $3.05 billion for the trailing twelve months, compared with $3.03 billion for the prior-year period. Free cash flow decreased 39% to $1.15 billion for the trailing twelve months, compared with $1.90 billion previously.
"I’m excited to announce that we now have more than 130,000 new, in-copyright books that are exclusive to the Kindle Store – you won’t find them anywhere else. They include many of our top bestsellers – in fact, 16 of our top 100 bestselling titles are exclusive to our store," said Jeff Bezos, founder and CEO of Amazon.com. "If you’re an Amazon Prime member, you don’t even need to buy these titles – you can borrow them for free – with no due dates – from our revolutionary Kindle Owners’ Lending Library. The Kindle Owners’ Lending Library is heavily used by Kindle owners, and it has extremely unusual features that both authors and customers love. Every time you borrow a book, the author gets paid – and we have an inexhaustible supply of each title so you never have to wait in a queue for the book you want. Kindle is the bestselling e-reader in the world by far, and I assure you we’ll keep working hard so that the Kindle Store remains yet another reason to buy a Kindle!"
Amazon said it is looking for second-quarter sales of $11.9 million to $13.3 billion, which compares to the Street estimate of $12.82 billion, and an operating loss of $260 million to a gain of $40 million. Analysts are currently expecting the company to report quarterly EPS of 20 cents.
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