Amazon (AMZN) Tops Q4 EPS by 37c, Q1 Guidance Misses

Amazon (NASDAQ: AMZN) reported Q4 EPS of $6.04, $0.37 better than the analyst estimate of $5.67. Revenue for the quarter came in at $72.4 billion versus the consensus estimate of $71.87 billion.

“Alexa was very busy during her holiday season. Echo Dot was the best-selling item across all products on Amazon globally, and customers purchased millions more devices from the Echo family compared to last year,” said Jeff Bezos, Amazon founder and CEO. “The number of research scientists working on Alexa has more than doubled in the past year, and the results of the team’s hard work are clear. In 2018, we improved Alexa’s ability to understand requests and answer questions by more than 20% through advances in machine learning, we added billions of facts making Alexa more knowledgeable than ever, developers doubled the number of Alexa skills to over 80,000, and customers spoke to Alexa tens of billions more times in 2018 compared to 2017. We’re energized by and grateful for the response, and you can count on us to keep working hard to bring even more invention to customers.”

GUIDANCE:

Amazon sees Q1 2019 revenue of $56-60 billion, versus the consensus of $60.96 billion.

• Net sales are expected to be between $56 billion and $60 billion, or to grow between 10% and 18% compared with first quarter 2018. This guidance anticipates an unfavorable impact of approximately 210 basis points from foreign exchange rates.
• Operating income is expected to be between $2.3 billion and $3.3 billion, compared with $1.9 billion in first quarter 2018.
• This guidance assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded.

For earnings history and earnings-related data on Amazon (AMZN) click here.

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