Amazon Posts Big Q4 Earnings Beat, Weak Q1 Sales Guidance (NASDAQ:AMZN)

Amazon Posts Big Q4 Earnings Beat, Weak Q1 Sales Guidance (NASDAQ:AMZN)

In 2017, Amazon earned just $3.0 billion in profit.

Inc on Thursday forecast first-quarter sales below Wall Street estimates, as it faces regulatory hurdles in India and a slowdown in e-commerce sales in Europe.

Shares of the company fell 1.7 per cent to US$1,690 after the bell.

For the fourth quarter, Amazon North America delivered more operating income than AWS-$2.25 billion to $2.18 billion.

The company said that for the first quarter of 2019, net sales are expected to fall between US$56 billion and US$60 billion - though some analysts had set their sights on almost $61 billion. And total revenue of $72.4 billion also beat the $71.9 billion investors expected.

Amazon forecast operating income will be between $2.3 billion and $3.3 billion this quarter, compared with $1.9 billion a year earlier.

Amazon's shares, which closed up 2.9 percent, to $1,718.73, fluctuated in after-hours trading - falling by more than 1 percent before rising by almost 3 percent.


Shares of Amazon are up around 17% over the previous year.

But Amazon has an advantage over those competitors, in that it can leverage growing profits from its Amazon Web Services cloud computing division to allow its e-commerce operations to run on thin profit margins. The company has more than 100 million Prime members globally.

"Alexa was very busy during her holiday season", Amazon founder and CEO Jeff Bezos said in his only statement about earnings.

The company blamed unfavourable foreign exchange rates for first-quarter sales guidance that undershot analysts' estimates. Shares fluctuated between gains and losses in extended trading after the report and were little changed at 5:19 p.m.in NY.

The big picture: Amazon revealed that during the holiday season, tens of millions of customers started Prime free trials or started paid memberships. Analysts had expected 19.4% revenue growth and EPS rising from $3.27 to $4.44. Amazon had jumped back above Microsoft Corp., which is No. 2 in cloud computing, as the most valuable publicly traded company, with a market capitalization of $840.4 billion. Amazon in October pledged to pay all of its warehouse employees at least US$15 an hour, while eliminating some bonuses and stock awards.

Company executives said they are looking beyond the amazon.com website when it comes to being a player in the digital ad market dominated by Google and Facebook, and is even dabbling with video ads. The online retailer's brick-and-mortar strategy also includes bookstores and a cashierless convenience store called AmazonGo, which lets customers check in with a smartphone app and be charged automatically based on what they remove from the store.

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