Amazon.com Earnings Cheat Sheet: Profits Dwindle As Sales Jump 38%

Rising costs did not help S&P 500 (NYSE:SPY) component Amazon.com, Inc. (NASDAQ:AMZN) in the first quarter as profit dropped from a year earlier. Amazon.com, Inc. 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 the internet retailer fell to $201 million (44 cents/share) vs. $299 million (66 cents/share) a year earlier. A decline of 32.8% from the year earlier quarter.

Revenue: Rose 38.2% to $9.86 billion YoY.

Actual vs. Wall St. Expectations: AMZN fell short of the mean analyst estimate of 61 cents/share. Estimates ranged from 50 cents per share to 79 cents per share.

Quoting Management: “In the last 90 days, we announced Kindle with Special Offers, Kindle Library Lending, Audible audiobooks on Kindle, Appstore for Android, Amazon for Windows Phone seven, Checkout by Amazon in both Germany and the U.K., a Kindle Store in Germany, Cloud Drive, Cloud Player, and Prime Instant Video – just to call out a few of the things we’ve been working on,” said Jeff Bezos, founder and CEO of Amazon.com. “We love inventing on behalf of customers and have never been more excited about the long-term opportunities.”

Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 40%, with the biggest boost coming in the first quarter of the last fiscal year when revenue rose 45.9% from the year earlier quarter.

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the fourth quarter of the last fiscal year, net income rose 8.3% from the year earlier while the figure increased 16.1% in third quarter of the last fiscal year, 45.8% four quarters ago and 68.9% five quarters earlier.

Competitors to Watch: eBay Inc. (NASDAQ:EBAY), Overstock.com, Inc. (NASDAQ:OSTK), Wal-Mart Stores, Inc. (NYSE:WMT), Google Inc. (NASDAQ:GOOG), Barnes & Noble, Inc. (NYSE:BKS), Costco Wholesale Corp. (NASDAQ:COST), Best Buy Co., Inc. (NYSE:BBY), OverStock.com (NASDAQ:OSTK), HSN (NASDAQ:HSNI), PC Mall, Inc. (NASDAQ:MALL), Target (NYSE:TGT) and Apple Inc. (NASDAQ:AAPL).

Today’s Performance: Shares of AMZN are trading at $180.49 as of April 26, 2011 at 4:24 PM ET, down 1.81% from the previous closing price of $185.42.


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