Amazon.com Earnings: Here’s Why Shares are Down Now

Amazon.com Inc. (NASDAQ:AMZN) had a loss and missed Wall Street’s expectations, AND 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 down 2.59%.

Amazon.com Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.02 in the quarter versus EPS of $0.01 in the year-earlier quarter.

Revenue: Rose 22.36% to $15.7 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Amazon.com Inc. reported adjusted EPS loss of $0.02 per share. By that measure, the company missed the mean analyst estimate of $0.05. It missed the average revenue estimate of $15.73 billion.

Quoting Management: “We’re so grateful to our customers for their response to Kindle devices and our digital ecosystem. This past quarter, our top 10 selling items worldwide were all digital products – Kindles, Kindle Fire HDs, accessories and digital content,” said Jeff Bezos, founder and CEO of Amazon.com. “The Kindle service keeps getting better. The Kindle Store now offers millions of titles including more than 350,000 exclusives that you won’t find anywhere else. Prime Instant Video has surpassed 40,000 titles, including many premium exclusives like Downton Abbey and Under the Dome. And we’ve added more than a thousand books, games, educational apps, movies and TV shows to Kindle FreeTime Unlimited, bringing together in one place all the types of content kids and parents love.”

Key Stats (on next page)…

Revenue decreased 2.28% from $16.07 billion in the previous quarter. EPS decreased to $-0.02 in the quarter versus EPS of $0.18 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 $0.12 to a profit $0.09. For the current year, the average estimate has moved down from a profit of $1.35 to a profit of $1.27 over the last ninety days.

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

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