Amazon.com, Inc. (AMZN) - NASDAQ
  • Thu, Apr. 28, 5:04 PM
    • Amazon Web Services had Q1 revenue of $2.57B (+64% Y/Y) and an op. profit of $604M (up from $195M a year ago, and driving Amazon's EPS beat). Sales growth was slightly below Q4's 69%.
    • North American revenue rose 27% Y/Y to $17B, after growing 24% in Q4; op. profit rose to $588M from $254M a year ago (also boosted EPS). With the help of lower forex pressures, International revenue rose 24% to $9.6B, after growing 12% in Q4; the segment had a $121M op. loss vs. a $194M op. loss a year ago.
    • Top-line details: North American Media revenue +8% Y/Y to $3.2B. North American electronics/general merchandise (EGM) revenue +32% to $13.5B. North American Other revenue (ads, credit cards, etc.) +27% to $277M. International Media +7% to $2.5B. International EGM +31% to $7B. International Other +15% to $52M.
    • Financials: Gross margin (boosted by AWS and third-party sales) rose to 35.2% from 32.2% a year ago. Spending growth remains high: Fulfillment spend +34% to $3.7B, marketing +33% to $1.4B, tech/content +28% to $3.5B, G&A +16% to $497M.

      Trailing 12 month free cash flow minus lease principal payments and assets acquired via capital leases was $1.6B vs. $2.5B at the end of Q4 and -$1.2B a year ago. Amazon ended Q1 with $16B in cash/investments and $8.2B in debt.
    • AMZN +12.2% after hours to $674.47. The all-time high (set in December) is $696.44.
    • Amazon's results/guidance, earnings release
    | Thu, Apr. 28, 5:04 PM | 36 Comments
  • Thu, Apr. 28, 4:05 PM
    • Amazon (NASDAQ:AMZN): Q1 EPS of $1.07 beats by $0.49.
    • Revenue of $29.13B (+28.2% Y/Y) beats by $1.15B.
    • Expects Q2 revenue of $28B-$30.5B vs. a $28.33B consensus. Expects Q2 op. income of $375M-$975M vs. $465M a year ago.
    • Shares +10.7% after hours.
    • Press Release
    | Thu, Apr. 28, 4:05 PM | 103 Comments
  • Wed, Apr. 27, 5:35 PM
  • Fri, Jan. 29, 4:02 PM
    • With the help of a 2.4% Nasdaq gain, Amazon (NASDAQ:AMZN) wound up paring the initial losses seen after the company missed Q4 estimates and offered in-line Q1 guidance, and is now up slightly from Wednesday's close (after having surged on Thursday with the help of Facebook's earnings). Several firms cut their targets, Benchmark raised its target, and no one upgraded or downgraded.
    • Like many other Amazon bulls, RBC's Mark Mahaney (target cut by $60 to $715) thinks it's business as usual. "Here’s why we don’t see a fundamental problem: 1.) Revenue was closest (2.7%) to AMZN Q4 Guide high-end in 5 years. 2.) Q1 Revenue Guide implies almost no change in Y/Y revenue growth, despite a 4 pt tougher comp. 3.) [Paid unit growth] of 26% Y/Y was highest organic growth in over 2 years. 4.) The cause of the heavier than expected Fulfillment & Shipping expenses was a Good Problem – excess demand – and not structural. The # of 3rd party sellers using [FBA - Fulfillment by Amazon] jumped 50% Y/Y"
    • Mizuho's Neil Doshi (target cut by $35 to $685): "So what’s changed? Amazon is seeing greater third-party FBA-related units flow through, thus requiring more investment in fulfillment. Ultimately, FBA comes at higher margin than [first-party] sales, so we believe these investments will drive revenue and margin improvement over time."
    • CLSA's James Lee ($710 target): "The modest revenue miss was due to 'other revenues' and mix shift to 3P. Other revenues were mostly advertising, which was restructured in 3Q, causing a 50bp drag on the growth rate ... Excluding these impacts, e-commerce revenues beat consensus by 1% We think any concern in slowing growth appears to be premature as Amazon’s revenues grew 23% YoY, on par with Alibaba’s GMV growth in China.”
    • Needham's Kerry Rice is less bullish. "While some of the short fall was attributable to FX, we believe the holiday e-commerce trends likely tailed off faster than expected and the revenue mix favored Amazon’s third-party (3P) business ... Q1 guidance was mixed with revenue upside likely driven by Prime and AWS, but lower than expected operating income as Amazon continues to invest in Prime, as well as ongoing investment in fulfillment, marketing and technology and content."
    • Meanwhile, Amazon's disclosure that Prime subscribers grew 51% in 2015 (no subscriber number was given, as usual) is drawing attention. Re/code's Jason Del Rey thinks the figure implies Amazon has at least 46M Prime subs, given past disclosures.

      Also getting attention: A line in Amazon's 2015 10-K (filed in tandem with the Q4 report) in which the company refers to itself as a "transportation service provider." Several reports and disclosures have arrived over the last two months suggesting Amazon is expanding its logistics ambitions.
    • Prior Amazon coverage
    | Fri, Jan. 29, 4:02 PM | 29 Comments
  • Thu, Jan. 28, 4:27 PM
    • Amazon's (NASDAQ:AMZN) North American revenue (60% of total revenue) rose 24% Y/Y in Q4 to $21.5B after growing 28% in Q3; segment op. income was $1B. International revenue rose 12% Y/Y to $11.8B (22% exc. forex) after growing 7% in Q3; op. income was $60M. AWS revenue rose 69% to $2.4B after growing 78% in Q3; op. income was $687M.
    • Top-line details: North American Media revenue +11% Y/Y to $3.9B; international Media -3% to $3.3B. North American electronics/general merchandise revenue +28% to $17.3B; international EGM revenue revenue +19% to $8.5B. Overall, product revenue rose 15% to $26.6B, and service revenue 47% to $9.1B.
    • Financials: Gross margin (lifted by AWS and 3rd-party seller growth) rose to 31.9% from 29.5% a year ago. Fulfillment spend +33% Y/Y to $4.5B; marketing +15% to $1.8B; tech/content +36% to $3.6B; G&A (affected by stock compensation timing) -12% to $390M.

      Trailing 12 month free cash flow minus principal lease payments and assets acquired via capital leases was $2.5B. Amazon ended Q4 with $19.8B in cash/marketable securities and $8.2B in long-term debt.
    • Amazon has dropped to $555.02 after hours.
    • Amazon's Q4 results, earnings release
    | Thu, Jan. 28, 4:27 PM | 65 Comments
  • Thu, Jan. 28, 4:04 PM
    • Amazon (NASDAQ:AMZN): Q4 EPS of $1.00 misses by $0.56.
    • Revenue of $35.75B (+21.9% Y/Y) misses by $180M.
    • Expects Q1 revenue of $26.5B-$29B (+17-28% Y/Y) vs. a $27.65B consensus. Expects Q1 op. income of $100M-$700M vs. $255M a year earlier. Guidance assumed $600M in stock-based compensation.
    • Shares -9.2% after hours.
    | Thu, Jan. 28, 4:04 PM | 208 Comments
  • Thu, Jan. 28, 8:52 AM
    | Thu, Jan. 28, 8:52 AM | 28 Comments
  • Wed, Jan. 27, 5:35 PM
  • Oct. 22, 2015, 5:42 PM
    • Amazon Web Services had Q3 revenue of $2.09B, +15% Q/Q and +78% Y/Y. Annual growth slowed just slightly from Q2's 81%, and remained well above Q1's 49%. Segment op. profit rose over 5x Y/Y to $521M.
    • North American revenue (excluding AWS) was also strong, rising 28% Y/Y to $15B after having grown 26% in Q2. The segment had a $528M op. profit, after seeing a $60M loss a year ago. Media revenue +9%, electronics/general merchandise (EGM) +35%.
    • International revenue rose 7% Y/Y (24% exc. forex) to  $8.3B, after rising 3% in Q2. Segment op. loss narrowed to $56M from $174M. Media revenue -8%, EGM +14%.
    • Financials: Gross margin (boosted by AWS and 3rd-party sales) was 33.9%, down from 34.6% in Q2 but up from 30.7% a year ago. Fulfillment spend +22% Y/Y to $3.2B, marketing +27% to $1.3B, tech/content +32% to $3.2B, G&A +14% to $463M. Trailing 12 month op. cash flow +72% Y/Y to $9.8B. Amazon ended Q3 with $14.4B in cash/investments, and $8.2B in long-term debt.
    • AMZN +10.7% to $624.50, making new highs in the process.
    • Q3 results/Q4 guidance, PR
    | Oct. 22, 2015, 5:42 PM | 78 Comments
  • Oct. 22, 2015, 4:04 PM
    • Amazon (NASDAQ:AMZN): Q3 EPS of $0.17 beats by $0.30.
    • Revenue of $25.36B (+23% Y/Y) beats by $450M.
    • Expects Q4 revenue of $33.5B-$36.75B (+14%-25% Y/Y) vs. a $35.2B consensus. Expects Q4 op. income of $80M to $1.28B.
    • Shares +8% after hours.
    | Oct. 22, 2015, 4:04 PM | 37 Comments
  • Oct. 21, 2015, 5:35 PM
  • Jul. 24, 2015, 1:40 PM
    • Not surprisingly, analysts are rushing to hike their Amazon (NASDAQ:AMZN) targets as shares jump following a Q2 beat fueled in part by an 81% Y/Y increase in AWS revenue. Barclays and B. Riley have upgraded to bullish ratings; several firms were prescient enough to upgrade prior to earnings. Amazon has given back some of yesterday's AH gains; its market cap is at $251B.
    • In addition to AWS growth, Amazon's 390 bps Y/Y gross margin improvement is drawing attention. FBN's Shebly Seyrafi (Outperform) attributes the gains to AWS, 3rd-party seller unit growth (45% of paid units vs. 41% in Q1 and a year ago), and lower shipping costs (4.1% of revenue vs. 4.4% in Q1 and 4.8% a year ago). Credit Suisse's Stephen Ju (Outperform) also thinks favorable Japanese comps helped, while adding the Prime price hike and past warehouse investments are cutting shipping loss margins.
    • Mizuho's Neil Doshi (Buy): "Revenue growth (ex-FX) accelerated to 27% YoY vs. 21% YoY in 1Q, which marked the strongest growth we’ve in about 3 years. Gross Margins reached a record high of ~35%, and CSOI margin was 4.6%; the strongest we’ve seen since 1Q11. While Amazon continues to invest in the biz, the flywheels are kicking in – Prime subscribers are transacting more on Amazon, while investments in FCs, 3P and AWS are helping to drive margins higher.”
    • SunTrust's Bob Peck (Neutral) cautions Amazon's spending history could mean recent margin/profit improvements will be short-lived. "Amazon has a history of 'giving back' operational efficiencies to consumers via lower prices, as well as aggressively investing to drive long- term [free cash flow] growth. Key initiatives include 1) marketplace, particularly on adding fulfillment centers, increasing [fulfillment] for 3P sellers, and expanding in India; 2) Prime, especially on adding content and expanding Prime Now; 3) AWS, adding new features/functionality as well as geographic expansion (new region in India). As a result, we expect margins to trend lower from 4Q’15 onward.”
    • On the earnings call (transcript), new CFO Brian Olsavsky stated paid units rose 22% Y/Y, and active customer accounts by 7M Q/Q to 285M. When asked about AWS' growth pickup, he noted major price cuts carried out in Q2 2014 led to favorable comps.
    • Prior Amazon coverage
    | Jul. 24, 2015, 1:40 PM | 7 Comments
  • Jul. 23, 2015, 4:46 PM
    • Amazon Web Services (NASDAQ:AMZN) had Q2 revenue of $1.82B, +16% Q/Q and +81% Y/Y. Annual growth accelerated sharply from Q1's 49%. AWS segment op. profit rose over 5x Y/Y to $391M.
    • Regional/segment performance: North American revenue (excludes AWS) +26% Y/Y to $13.8B; op. profit +114% to $703M. International revenue +3% to $7.6B (+22% exc. forex); op. loss of $19 vs. $2M a year ago. North American Electronics and General Merchandise (EGM) revenue +31% to $10.99B; Media +6% to $2.62B. International EGM revenue +10% to $5.43B; Media -12% to $2.09B.
    • Financials: Gross margin (boosted by AWS and 3rd-party seller growth) rose to 34.6% from 32.2% in Q1 and 30.7% a year ago, giving a lift to EPS. Fulfillment spend +21% Y/Y to $2.88B; marketing +22% to $1.15B; tech/content +36% to $3.02B; G&A +24% to $467M. Trailing 12 months (TTM) op. cash flow +69% to $8.98B. Amazon ended Q2 with $14B in cash/investments, and $8.3B in long-term debt.
    • Shares have surged to $570.59 AH, easily taking out their old highs and leading Amazon's market cap to surpass Wal-Mart's. The firms that upgraded ahead of earnings are looking smart.
    • Q2 results, PR
    | Jul. 23, 2015, 4:46 PM | 59 Comments
  • Jul. 23, 2015, 4:13 PM
    • Amazon (NASDAQ:AMZN): Q2 EPS of $0.19 beats by $0.33.
    • Revenue of $23.18B (+19.9% Y/Y) beats by $790M.
    • Expects Q3 revenue of $23.3B-$25.5B (+13%-24% Y/Y) vs. a $23.89B consensus.
    • Expects Q3 op. income of -$480M to $70M. Guidance assumes $580M in stock compensation and amortization expenses.
    • Shares +16.1% AH
    | Jul. 23, 2015, 4:13 PM | 111 Comments
  • Jul. 22, 2015, 5:35 PM
Company Description
Amazon.com, Inc. provides online retail shopping services. It provides services to four primary customer sets: consumers, sellers, enterprises, and content creators. The company also provides other marketing and promotional services, such as online advertising and co-branded credit card... More
Sector: Technology
Country: United States