Tuesday , 20 November 2018
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Amazon breaks its losing streak, with EPS of $0.45 on net sales of $29.33B

Amazon breaks its losing streak, with EPS of $0.45 on net sales of $29.33B

Amazon's Jeff Bezos

Amazon's Jeff Bezos

Above: Amazon’s Jeff Bezos at a 2010 event.

Image Credit: Jurvetson/Flickr

The big question today was whether Amazon would post positive earnings, and the answer is sort of.

Amazon reported revenue net sales of $29.33 billion, and diluted earnings per share of $0.45. Analysts expected earnings of $0.17 cents per share on revenue of $29.67 billion.

Amazon has been on the decline in the last two quarters. During the second quarter of 2014 the company reported losses of $126 million in earnings, or ($0.27) a share, and by the third quarter Amazon was reporting losses of $0.95 cents a share.

Earnings have never been Amazon’s focus. The company famously prizes product growth and traffic over earnings. To that effect, Amazon reported strong sales of 88.99 billion, compared with $74.45 billion in the third quarter of 2013.

Worldwide membership of Amazon Prime grew 53 percent in 2014, the company reports. The annual membership gives customers access to free two-day shipping as well as a host of content — like its award-winning original series, Transparent.

Amazon launched a number of competitive products this quarter, including a one-hour delivery service called Prime Now that operates in New York City; a corporate email and calendar service; and Amazon Echo, a $200 voice-activated speaker that plays music, the news, and answers questions. All these serve to get Amazon’s brand in more places, which conceivably will lead back to more sales for its e-commerce site.

Looking forward to next quarter, Amazon expects net sales to be between $20.9 billion and $22.9 billion, a growth of 6 -16 percent from quarter one of 2014. Operating losses are believed to run a wide range between $450 million and $50 million. In Q1 of 2014, Amazon saw net losses of $146 million.

In after-hours trading Amazon’s stock is up nearly seven percent.

Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth’s Biggest Selection. Amazon.com, Inc. seeks to be Earth’s most customer-centric company, where cu… read more »

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