Amazon.com Inc. Earnings: Beats Estimates Despite Falling Profit

Rising revenue was not enough for S&P 500 (NYSE:SPY) component Amazon.com Inc. (NASDAQ:AMZN) as the catalog and mail order house saw profit fall in the first quarter. Amazon.com sells millions of products across dozens of product categories on its web site. It also manufactures and sells the Kindle, an e-reader.

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Amazon.com Earnings Cheat Sheet for the First Quarter

Results: Net income for Amazon.com Inc. fell to $130 million (28 cents per share) vs. $201 million (44 cents per share) a year earlier. This is a decline of 35.3% from the year-earlier quarter.

Revenue: Rose 33.8% to $13.19 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Amazon.com Inc. beat the mean analyst estimate of 7 cents per share. It beat the average revenue estimate of $12.86 billion.

Quoting Management: “I’m excited to announce that we now have more than 130,000 new, in-copyright books that are exclusive to the Kindle Store – you won’t find them anywhere else. They include many of our top bestsellers – in fact, 16 of our top 100 bestselling titles are exclusive to our store,” said Jeff Bezos, founder and CEO of Amazon.com.

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 40.3%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 51% from the year earlier quarter.

The company has beaten estiamtes for two quarters in a row. In the fourth quarter of the last fiscal year, it topped expectations with net income of 38 cents versus a mean estimate of net income of 16 cents per share.

Net income has dropped 41.2% year-over-year on average across the last five quarters. Performance was hurt by a 72.7% decline in the third quarter of the last fiscal year from the year-earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 39 cents per share to 20 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $1.91 a share to $1.36 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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