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Goodnight Amazon: World's Most Overhyped Retailer Misses Top Line
All one can say is oops. That margin compression sure does suck:
- Q4 EPS USD 0.91 vs. Exp. USD 0.88
- Q4 net sales USD 12.95bln vs. Exp. USD 13.03bln
- Net sales are expected to be between $9.1 billion and $9.9 billion, or
to grow between 28% and 39% compared with first quarter 2010 - Operating income is expected to be between $260 million and $385
million
We have yet to see snow being blamed for the After Hour stock collapse
And a whole lot of momentum chasers got wiped out all over again. From Dow Jones earlier:
Amazon appears to have pre-earnings bullish bias. About 62,000 calls traded on online retailer Amazon.com, double its average daily volume against 40,000 puts near midday heading into its earnings after the closing bell, according to Trade Alert. "We are seeing a modest bid up in call premium and a reduction in the premium in puts," said Steve Place, a founder of investingwithoptions.com. "That indicates to us that the majority of call options were bought today and the majority of puts were sold. That's pretty bullish on today's morning price action." The busiest contract is the weekly $190 strike calls which expire this Friday with volume of 5,070 contracts, Trade Alert data show. Amazon options this morning are pricing in about a 6.4 percent post earnings move in the stock price based on the front month average of the $180 and $185 straddles, Place said. He notes the close-to- close movement historically for Amazon earnings is not that big but the maximum movement for the trading day is quite large.
Full release:
Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its Operating cash flow increased 6% to $3.50 billion for the trailing Common shares outstanding plus shares underlying stock-based awards Net sales increased 36% to $12.95 billion in the fourth quarter, Operating income was $474 million in the fourth quarter, compared with Net income increased 8% to $416 million in the fourth quarter, or $0.91 "Thanks to our customers, we achieved two big milestones," said Jeff Full Year 2010 Net sales increased 40% to $34.20 billion, compared with $24.51 billion Operating income increased 25% to $1.41 billion, compared with $1.13 Net income increased 28% to $1.15 billion in 2010, or $2.53 per diluted Highlights Financial Guidance The following forward-looking statements reflect Amazon.com's First Quarter 2011 Guidance
A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and These forward-looking statements are inherently difficult to predict. Our investor relations website is www.amazon.com/ir
fourth quarter ended December 31, 2010.
twelve months, compared with $3.29billion for the
trailing twelve months ended December 31, 2009. Free cash flow decreased
14% to $2.52 billion for the trailing twelve months, compared with $2.92
billion for the trailing twelve months ended December 31, 2009.
totaled 465 million on December 31, 2010, compared with 461 million a
year ago.
compared with $9.52 billion in fourth quarter 2009. Excluding the $139
million unfavorable impact from year-over-year changes in foreign
exchange rates throughout the quarter, net sales would have grown 37%
compared with fourth quarter 2009.
$476 million in fourth quarter 2009. The unfavorable impact from
year-over-year changes in foreign exchange rates throughout the quarter
on operating income was $18 million.
per diluted share, compared with net income of $384 million, or $0.85
per diluted share, in fourth quarter 2009.
Bezos, founder and CEO of Amazon.com. "We had our first $10 billion
quarter, and after selling millions of third-generation Kindles with the
new Pearl e-ink display during the quarter, Kindle books have now
overtaken paperback books as the most popular format on Amazon.com. Last
July we announced that Kindle books had passed hardcovers and predicted
that Kindle would surpass paperbacks in the second quarter of this year,
so this milestone has come even sooner than we expected - and it's on
top of continued growth in paperback sales."
in 2009. The unfavorable impact from year-over-year changes in foreign
exchange rates throughout the year on net sales was $86 million.
billion in 2009. The unfavorable impact from year-over-year changes in
foreign exchange rates throughout the year on operating income was $28
million. In 2009, operating income was negatively impacted by a $51
million legal settlement.
share, compared with net income of $902 million, or $2.04 per diluted
share, in 2009.
Since the beginning of the year, for every 100 paperback books Amazon
has sold, the Company has sold 115 Kindle books. Additionally, during
this same time period the Company has sold three times as many Kindle
books as hardcover books. This is across Amazon.com's entire U.S. book
business and includes sales of books where there is no Kindle edition.
Free Kindle books are excluded and if included would make the numbers
even higher.
new advanced paper-like Pearl e-ink display in the fourth quarter and
the third-generation Kindle eclipsed "Harry Potter and the Deathly
Hallows" as the bestselling product in Amazon's history.
Releases and 107 of 112 New York Times Bestsellers. Over 670,000 of
these books are $9.99 or less, including 74 New York Times
Bestsellers. Millions of free, out-of-copyright, pre-1923 books are
also available to read on Kindle.
apps, launching a Kindle app for Windows Phone 7. In addition, the
Kindle for Android app was updated to enable users to buy, read and
sync over 100 Kindle newspapers and magazines. All Kindle apps let
customers "Buy Once, Read Everywhere"--on Kindle, Kindle 3G, Kindle DX,
iPad, iPod touch, iPhone, Mac, PC, BlackBerry and Android-based
devices. All Kindle apps are free and incorporate Amazon's Whispersync
technology, which allows readers to seamlessly switch between devices.
With Kindle Worry-Free Archive, books purchased from the Kindle Store
are automatically backed up online in the Kindle library on Amazon
where they can be re-downloaded wirelessly for free, anytime.
app that provides shoppers an easy way to compare in-store prices with
the low prices from Amazon.com and other online merchants. Shoppers
can use the app to scan a barcode, snap a picture, or say or type a
product name to instantly see online prices for that item. Over the
Black Friday-Cyber Monday weekend, mobile shoppers used Price Check to
look up prices over a million times. In December, shoppers used the
app more than two million times to check prices.
Canadian sites, were $7.21 billion, up 45% from fourth quarter 2009.
Japanese, French, Chinese and Italian sites, were $5.74 billion, up
26% from fourth quarter 2009. Excluding the unfavorable impact from
year-over-year changes in foreign exchange rates throughout the
quarter, sales grew 29%.
unfavorable impact from year-over-year changes in foreign exchange
rates throughout the quarter, sales grew 13%.
$7.39 billion. Excluding the unfavorable impact from year-over-year
changes in foreign exchange rates throughout the quarter, sales grew
62%.
customers a vast selection of books, DVDs, video games, music and
consumer electronics at everyday low prices. Amazon.it's convenient
services include Amazon Prime, the membership program with unlimited
free guaranteed 2-3 day delivery at an annual fee of 9.99 Euros. The
first product sold on Amazon.it was a Canon Pixma printer to a new
Prime customer in Turino, Italy.
Premium Support offerings by 50% and added two new support plans to
meet the needs of developers and enterprises of all sizes and
technical ability. In addition to the existing Silver and Gold support
plans, AWS now offers a Bronze support plan for $49 per month and a
Platinum support plan that provides 15 minute response times and
dedicated Technical Account Managers.
continuing its commitment to providing the security certifications
developers and enterprises care about. Merchants and other service
providers can now run their applications on AWS PCI-compliant
technology infrastructure to store, process and transmit credit card
information in the cloud.
deploy applications to AWS and manage applications in the AWS cloud.
Elastic Beanstalk automatically scales up and down as needed so
developers don't need to worry about configuring their infrastructure
requirements in AWS. Unlike existing application containers or
"platform as a service" offerings that force developers to accept
infrastructure decisions pre-determined by the vendor, Elastic
Beanstalk allows developers to "open the hood" to tinker with the AWS
resources powering their applications. AWS customers can now choose to
have as much automation or as much control as they wish.
expectations as of January 27, 2011. Our results are inherently
unpredictable and may be materially affected by many factors, such as
fluctuations in foreign exchange rates, changes in global economic
conditions and consumer spending, world events, the rate of growth of
the Internet and online commerce and the various factors detailed below.
to grow between 28% and 39% compared with first quarter 2010.
million, or between 34% decline and 2% decline compared with first
quarter 2010.
compensation and amortization of intangible assets, and it assumes,
among other things, that no additional business acquisitions or
investments are concluded and that there are no further revisions to
stock-based compensation estimates.
will be available for at least three months at www.amazon.com/ir.
This call will contain forward-looking statements and other material
information regarding the Company's financial and operating results.
Actual results could differ materially for a variety of reasons,
including, in addition to the factors discussed above, the amount that
Amazon.com invests in new business opportunities and the timing of those
investments, the mix of products sold to customers, the mix of net sales
derived from products as compared with services, the extent to which we
owe income taxes, competition, management of growth, potential
fluctuations in operating results, international growth and expansion,
the outcomes of legal proceedings and claims, fulfillment center
optimization, risks of inventory management, seasonality, the degree to
which the Company enters into, maintains and develops commercial
agreements, acquisitions and strategic transactions, and risks of
fulfillment throughput and productivity. Other risks and uncertainties
include, among others, risks related to new products, services and
technologies, system interruptions, government regulation and taxation,
payments and fraud. In addition, the current global economic climate
amplifies many of these risks. More information about factors that
potentially could affect Amazon.com's financial results is included in
Amazon.com's filings with the Securities and Exchange Commission
("SEC"), including its most recent Annual Report on Form 10-K and
subsequent filings.
and we encourage investors to use it as a way of easily finding
information about us. We promptly make available on this website, free
of charge, the reports that we file or furnish with the SEC, corporate
governance information (including our Code of Business Conduct and
Ethics), and select press releases and social media postings.
»
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Its not that they dont read. They CANT read.
AMZN is already making a comeback!!!
from 166 to 168! Somebody must be working overtime.
Amazon has a compute cloud. They'll make it up on volume.
Interesting. If it is weak tomorrow and fails to bounce back right away the psychological effect of this sell off should be enough to end this run up.
Coincidentally my wait to see even one person using a Kindle ended today. I saw two people sitting opposite each other on the tube using one.
This is sofa king stupid. Like a beauty pagent they go down the line..."GE..google...Netflix...Oh my god something is wrong with Amazon's face, get Microsoft out there!"
It's a put on!
i hadnt used Amazon in a few years and went i went to buy something this past holiday season , i didnt realize that they dont even sell their own junk, i was being offered other peoples junk.....WTF !
HarryWanger says go long Amazon now, because it was $50 exactly two years ago, and the economy has no where to go but up, given the solid fundamentals.
Now is the time to go long. Amazon has only risen 350% in the last 24 months (to the day).
lulz
One Kindle blogger is speculating that Amazon is selling its Kindles at a loss. (Borders and B&N started a price war in desperation; Amazon had to match them.) Here's the link:
http://ireaderreview.com/2011/01/27/kindle-results-in-more-kindle-book-s...
I like the volume measure on this chart.
It's good to see that if you put all these hyperfast computers as superchargers on this economic engine you can achieve really high volumetric efficiencies.
I can't wait for black 10:27 am.
Last time this happened (7/22/2010, going from 118 to opening at 107) we ramped back up in no time.