Amazon.com Inc. Earnings Cheat Sheet: Bad Luck Continues

Rising costs hurt S&P 500 (NYSE:SPY) component Amazon.com, Inc. (NASDAQ:AMZN) in the third quarter as profit dropped from a year earlier. 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.

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

Amazon.com Earnings Cheat Sheet for the Third Quarter

Results: Net income fell to $63 million (14 cents per share) vs. $231 million (51 cents per share) a year earlier. This is a decline of 72.7% from the year earlier quarter.

Revenue: Rose 43.9% to $10.88 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AMZN fell short of the mean analyst estimate of 24 cents per share. Analysts were expecting revenue of $10.93 billion.

Quoting Management: Jeff Bezos, founder and CEO of Amazon.com. “In the three weeks since launch, orders for electronic ink Kindles are double the previous launch. And based on what we’re seeing with Kindle Fire pre-orders, we’re increasing capacity and building millions more than we’d already planned.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 41.6%, with the biggest boost coming in the second quarter when revenue rose 51% from the year earlier quarter.

The company has now seen net income fall in each of the last three quarters. In the second quarter, net income fell 7.7% from the year earlier, while the figure fell 32.8% in the first quarter.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 38 cents versus a mean estimate of net income of 37 cents per share.

The company’s cost of sales rose 43.9% from a year earlier. Last quarter, cost of sales was 76.5% of revenue, similar to a year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 80 cents per share, down from $1.06 ninety days ago. At $1.90 per share, the average estimate for the fiscal year has fallen from $2.33 ninety days ago.

Competitors to Watch: eBay Inc. (NASDAQ:EBAY), Wal-Mart Stores, Inc. (NYSE:WMT), Overstock.com, Inc. (NASDAQ:OSTK), Google Inc. (NASDAQ:GOOG), Barnes & Noble, Inc. (NYSE:BKS), Costco Wholesale Corp. (NASDAQ:COST), GSI Commerce, Inc. (NASDAQ:GSIC), Hot Topic, Inc. (NASDAQ:HOTT), PC Mall, Inc. (NASDAQ:MALL), Apple (NASDAQ:AAPL) and Best Buy Co., Inc. (NYSE:BBY).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)

 

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