Channel

Amazon Misses 3Q Profit Forecasts

Amazon Misses 3Q Profit Forecasts

SEATTLE — Amazon.com, Inc. announced financial results for its third quarter ended September 30, 2016.

Shares of Amazon.com Inc. fell in after-market trading on Thursday after the online retailer reported third-quarter net income that missed analyst expectations.

The Seattle-based company said it had profit of $252 million, or 52 cents per share.

The average estimate of 15 analysts surveyed by Zacks Investment Research was for earnings of 85 cents per share.

The online retailer posted revenue of $32.71 billion in the period, which topped Street forecasts. Twelve analysts surveyed by Zacks expected $32.57 billion.

For the current quarter ending in December, Amazon said it expects revenue in the range of $42 billion to $45.5 billion. Analysts surveyed by Zacks had expected revenue of $44.7 billion.

Amazon shares have increased 21 percent since the beginning of the year, while the Standard & Poor’s 500 index has increased slightly more than 4 percent. In the final minutes of trading on Thursday, shares hit $821.01, a climb of 34 percent in the last 12 months.

Shares fell $46.51, or 5.7 percent, to $771.93 in aftermarket trading.

 

From Seeking Alpha:

Operating cash flow increased 49% to $14.6 billion for the trailing twelve months, compared with $9.8 billion for the trailing twelve months ended September 30, 2015. Free cash flow increased to $8.6 billion for the trailing twelve months, compared with $5.4 billion for the trailing twelve months ended September 30, 2015. Free cash flow less lease principal repayments increased to $4.9 billion for the trailing twelve months, compared with $3.1 billion for the trailing twelve months ended September 30, 2015. Free cash flow less finance lease principal repayments and assets acquired under capital leases increased to $3.4 billion for the trailing twelve months, compared with $637 million for the trailing twelve months ended September 30, 2015.

Common shares outstanding plus shares underlying stock-based awards totaled 496 million on September 30, 2016, compared with 489 million one year ago.

Net sales increased 29% to $32.7 billion in the third quarter, compared with $25.4 billion in third quarter 2015. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on net sales was $52 million.

Operating income was $575 million in the third quarter, compared with $406 million in third quarter 2015.

Net income was $252 million in the third quarter, or $0.52 per diluted share, compared with $79 million, or $0.17 per diluted share, in third quarter 2015.

Fourth Quarter 2016 Guidance

  • Net sales are expected to be between $42.0 billion and $45.5 billion, or to grow between 17% and 27% compared with fourth quarter 2015. This guidance anticipates approximately 60 basis points of favorable impact from foreign exchange rates.
  • Operating income is expected to be between $0 and $1.25 billion, compared with $1.1 billion in fourth quarter 2015.
  • This guidance assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded.

 

_____

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on AMZN at https://www.zacks.com/ap/AMZN

_____

Keywords: Amazon, Earnings Report, Priority Earnings

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Tagged with , ,

Comment on the story

Your email address will not be published.