Amazon Reports Q4 In Line, Q1 Outlook is Bullish

Amazon.com (AMZN) Wednesday afternoon reported fourth quarter revenue of $5.67 billion and EPS of 48 cents, compared with Street estimates of $5.37 billion and 48 cents. The revenue figure included a $200 million bump from foreign exchange factors.

The outlook looks bullish, particularly given Street expectations that the company would provide conservative guidance. For the the first quarter, the company sees sales of $3.95 billion to $4.15 billion, above the Street consensus of $3.92 billion. Amazon sees operating income in the quarter of $155 million to $200 million, including $55 million in stock-related compensation.

The guidance represents year-over-year revenue growth of 31%-38%, and operating income growth of 7%-38%.

For the full year, AMZN sees sales of $18.75 billion to $19.75 billion, ahead of the Street consensus of $18.25 billion. The company sees operating income of $785 million to $985 million, including $240 million for stock-based comp. That would be revenue growth of 26%-33%, and operating income growth of 20%-50%.

Despite what looks like a bullish outlook, Amazon, which gained 20 cents to $74.15 in the regular session, are down $1.97, or 2.7%, at $72.24, in after hours trading.

Editor's note: See also the full AMZN conference call transcript.

Comments

[User 138049:]

margins is down, at least that is the reason given for the aftermarket decline.

2008 Jan 30 04:45 PM

[Hayweed:]

The quarter shows that AMZN needed extra sales to hit the earnings target which means margins are getting squeezed. PE is too high and needs to come down to about 30 times forward earnings to put it on par with the other growth stocks like AAPL, GOOG, and RImm

2008 Jan 30 05:11 PM

[Tom B:]

Taylor is 100% correct. AMZN is WAY overvalued.

I USE AMZN, but wouldn't touch the stock.

2008 Jan 30 08:13 PM

[Bottom Line:]

I felt guilty buying all those puts on AMZN today that I actually went on and made a purchase tonight... Thanks 2x Amazon!

2008 Jan 30 08:55 PM

[Louie Junior:]

The margin expansion hoax is over folks. Margins continue to fall.

Q404 Operating Margin = 6.38%
Q405 Operating Margin = 5.54%
Q406 Operating Margin = 4.94%
Q407 Operating Margin = 4.77%

bp2.blogger.com/_Q5i63...

People are waking-up and realizing this is just a fancy retailer -- unworthy of its high-tech, high margin multiple.

2008 Jan 30 10:44 PM