After the bell Thursday,
) reported mixed results for its Q1: an earnings beat on slightly
lower revenues and downwardly revised guidance... and the stock
is still up following the announcement.
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Amazon, the world's biggest Internet retailer, posted earnings of
18 cents per share on quarterly revenues of $16.07 billion. This
was a beat on the bottom line but a slight miss on the top for
Amazon, whose stock continues to trade near all-time highs.
This, despite a low-end guidance range for operating income of
-$340 million (far below Q212's $107 million), and a signal that
International sales growth may be slowing. After-market traders
paused a minute before buying more shares. But after climbing
2.2% at the close of regular trading, Amazon is up another 2.5%
as of now.
The Zacks Consensus Estimate was for 10 cents per share, which
marks the first time since Q1 2012 that Amazon has posted a
positive earnings surprise. That said, EPS was nowhere near last
year's 28 cents per share, though revenues were up 22% year over
Investors have grown accustomed to Amazon's ongoing long-term
strategy of investing capital into expanding its businesses and
using its synergies to venture elsewhere, and thus pay relatively
less attention to the quarter-to-quarter numbers. This explains
how a company like Amazon that hadn't posted an earnings beat in
a year could still be trading at a dizzying price-to-earnings
multiple north of 180x.
At first glance, Amazon looks to be taking on
) here a bit, creating new TV content through Amazon Studios and
its Prime Instant Video, expanding and updating licensing
agreements for content elsewhere. Much the way Amazon used its
vast resources to take on
) in online retail options and
) in deals on goods and services, expanding entertainment content
seems to be another area where CEO Jeff Bezos is saying, "Game
We'll have an extended take on Amazon's Q1 by tomorrow