Amazon.com Earnings: Here’s Why Investors are Happy Now

Amazon.com Inc. (NASDAQ:AMZN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2%.

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Amazon.com Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 35.71% to $0.18 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Rose 21.88% to $16.07 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Amazon.com Inc. reported adjusted EPS income of $0.18 per share. By that measure, the company beat the mean analyst estimate of $0.09. It missed the average revenue estimate of $16.16 billion.

Quoting Management: “Amazon Studios is working on a new way to greenlight TV shows. The pilots are out in the open where everyone can have a say,” said Jeff Bezos, founder and CEO of Amazon.com. “I have my personal picks and so do members of the Amazon Studios team, but the exciting thing about our approach is that our opinions don’t matter. Our customers will determine what goes into full-season production. We hope Amazon Originals can become yet another way for us to create value for Prime members.”

Key Stats (on next page)…

Revenue decreased 24.44% from $21.27 billion in the previous quarter. EPS decreased 14.29% from $0.21 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.33 to a profit $0.22. For the current year, the average estimate has moved down from a profit of $1.70 to a profit of $1.47 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)