Amazon’s stock price dropped more than 12% in post market trading — giving up impressive gains earlier today — after it reported Q4 earnings that fell far short of Wall Street expectations.
The e-retailer reported $482 million in net income, up 125.2% vs the period last year, on revenues of $35.75 billion, up 21.9%. Analysts expected revenues to hit $35.93 billion. Earnings at $1.00 per share fell far short of the $1.56 in the consensus forecast.
Despite the miss, CEO Jeff Bezos was resolutely upbeat in the company’s earnings announcement: “Twenty years ago, I was driving the packages to the post office myself and hoping we might one day afford a forklift,” he says. “This year, we pass $100 billion in annual sales and serve 300 million customers. And still, measured by the dynamism we see everywhere in the marketplace and by the ever-expanding opportunities we see to invent on behalf of customers, it feels every bit like Day 1.”
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Like many companies, Amazon says that the quarter’s results were hurt by weakening overseas currencies vs the strong dollar. Sales would have been $1.2 billion higher if that’s factored out.
The company projects that sales in the current quarter will come in between $26.5 billion and $29.0 billion, meaning they could up between 17% and 28% over last year’s Q1.
Media sales were up 10.9% to $3.9 billion in North America, but fell 3.4% to $3.3 billion abroad.
Amazon doesn’t break out information about its Prime Video operation. But it says that last year Prime memberships were up 51% worldwide. It notes that outside of the U.S. it had twice the number of streaming customers it had at the end of 2014.
Amazon shares have appreciated 107% over the last 12 months, including a 9% gain today before the earnings report was released.
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