The moment everyone has been waiting for has finally arrived, by which of course, we mean the moment when the market cap of AMZN would finally surpass Wal-mart (WMT).
Just after 4pm Jeff Bezos' Amazon reported number that were quite
impressive at first blush. And at second blush as well. Among these: a
whopping blow out beat on the topline of $23.2 billion in revenue, an
increase of 27% from a year ago, and far above the $22.4 billion
expected, which in turn resulted in Net income of $92 million, or EPS of
$0.19. The street was expecting a loss of $0.14 per share.
In terms of where the bulk of the growth and profitability came from, one word, or rather three letters: AWS (Amazon
Web Services), also known as the "cloud", whose net sales soared by 81%
Y/Y to $1.8 billion generating a 21.4% operating margin and net income
of $391 million up from $77 million a year ago.
And while the quarter was good especially for AMZN the "web services"
company, it was AMZN's forecast for the future that was even more
impressive:
The company now expects net sales to be between $23.3 billion and $25.5 billion, or to grow between 13% and 24% compared with third quarter 2014. It
also expects operating income (loss) is expected to be between $(480)
million and $70 million, compared to $(544) million in third quarter
2014, although if the current quarter is any indicatiton this is some
rather serious sandbagging.
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