Amazon beats by $0.02 and raises guidance, stock jumps 9% (2Q05 AMZN earnings results)

| About:, Inc. (AMZN)

Amazon (ticker: AMZN) was the second low expectations Internet bell-weather to beat numbers (after eBay). The company beat consensus EPS by $0.02 and raised guidance for Q3 and the full year. Details:

Q2 Results
(all comparisons are year over year unless stated otherwise)

  • EPS was $0.12, ahead of the consensus estimate of $0.10.
  • Revenue up 26% to $1.75 billion. Excluding $25 million benefit
    from currency movements, net sales grew 25%. Consensus was $1.73 billion.
  • Revenue geographical breakdown: US up 21% to $960 million; International up 33% (29% exclusing currency impact) to $793 million. International now 45% of total on trailing 12 month basis.
  • Revenue categories: Electronics and Other General rose 40% to $456 million, now accounts for 26% of sales versus 23%.
  • Operating income up 21% to $104 million, including $5 million negative
    impact for expensing stock options and $2 million  positive impact from
    exchange rate movements. Without expensing of stock options, operating
    income would have grown 27% to $110 million.
  • Operating margin up to 6.2% from 5.9%.
  • Net income was $52 million versus $76 million; includes $56 million in income tax
    expense versus $5 million.
  • Operating cash flow grew 52% to $624 million for the trailing twelve months, versus $410 million.
  • Free cash flow up 37% to $486 million for the trailing twelve months, compared with $354 million.

Q3 Guidance

  • Revenue of $1.76-1.91 billion, up 20-31%. Mid-point is $1.83 billion, versus current consensus of $1.81 billion.
  • Operating income of $60-90  million, or between (26%) decline and 11% growth. Includes stock-based  compensation of $35 million.
Full Year Guidance

  • Revenue of $8.275-8.675  billion, up 20-25%. Mid-point is $$8.475 billion, higher than consensus of $8.45 billion.
  • Operating income of $415-515 million,  or between (6%) decline and 17% growth. Includes stock-based comp of $110 million.

Full press release here.

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