Amazon.com Beats on EPS But GAAP Results Lag

Amazon.com (Nasdaq: AMZN  ) reported earnings on Jan. 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Amazon.com missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted significantly.

Gross margins expanded, operating margins grew, net margins dropped.

Revenue details
Amazon.com recorded revenue of $21.27 billion. The 36 analysts polled by S&P Capital IQ looked for a top line of $22.26 billion on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $17.43 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.31. The 20 earnings estimates compiled by S&P Capital IQ anticipated $0.29 per share. GAAP EPS of $0.21 for Q4 were 45% lower than the prior-year quarter's $0.38 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.1%, 340 basis points better than the prior-year quarter. Operating margin was 1.9%, 40 basis points better than the prior-year quarter. Net margin was 0.5%, 50 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $16.50 billion. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $76.17 billion. The average EPS estimate is $1.85.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 5,347 members out of 6,739 rating the stock outperform, and 1,392 members rating it underperform. Among 1,743 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,462 give Amazon.com a green thumbs-up, and 281 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Amazon.com is outperform, with an average price target of $274.65.

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