Amazon.com Inc. Revenue And Outlook Miss Estimates, Shares Fall

Share This Article
February 2, 2017 4:33pm NASDAQ:AMZN

NASDAQ:AMZN | News, Ratings, and Charts

Amazon.com, Inc. (NASDAQ:AMZN) late Thursday posted mixed fourth quarter earnings and offered a tepid outlook for the first quarter, sending its shares lower in aftermarket trading.


The Seattle-based retail superpower reported Q4 EPS of $1.54, which was $0.12 better than the Wall Street consensus of $1.42. Revenues rose 22.4% from last year to $43.74 billion, missing analysts’ $44.69 billion view, however.

Amazon’s North American sales rose 22% in the latest period to $26.24 billion, while operating income gained 28% to $816 million. Amazon Web Services (AWS) sales surged 47% from last year to $3.53 billion with operating income in that unit jumping 60% to $926 million.

On a sour note, AMZN offered weaker than expected guidance for the current first quarter. Q1 revenues are seen ranging from $33.25 to $35.75 billion, versus Wall Street’s $36 billion view. Operating income was forecast between $250 million and $900 million, a big downturn from last year’s first quarter when it booked $1.1 billion.

The company touted the new features of its popular Prime membership service via press release:

“Prime members can now choose from over 50 million items with free two-day shipping — up 73% since 2015. Prime Video is now available in more than 200 countries and territories. Prime Now added 18 new cities, which means millions more members now get one and two hour delivery. New benefits were also added to the list, like Prime Reading, Audible Channels for Prime, Twitch Prime and more. And customers noticed — tens of millions of new paid members joined the program in just this past year.”

Amazon.com, Inc. shares fell $31.21 (-3.72%) to $808.74 on Thursday afternoon. Prior to today’s report, AMZN had gained 12.04% year-to-date, versus a 1.90% rise in the benchmark S&P 500 index during the same period.

AMZN currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #3 of 44 stocks in the Internet category.


9 "BUY THE DIP" Growth Stocks For 2020

Read Next



Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular



Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories