Wednesday, July 23, 2008

Amazon Reports Q2 Earnings!

Just waiting for the Amazon numbers to be released:

Here they are:
  • EPS (earnings per share) came in at $0.37 cents a share; a significant beat of the Streets estimates of $0.27 per share.
  • Q2 revenue was up to $4.06 billion a 41% increase Y/Y
  • Excluding FX revenue gre 35% Y/Y
  • Operating income increased 86% Y/Y to $217 million
  • Excluding FX operating income grew 71% Y/Y
  • Net income increased 102% to $158 million in the second quarter, or $0.37 per diluted share, compared with net income of $78 million in 2007

Highlights:

  • Worldwide Media sales grew 31% to $2.41 billion in second quarter 2008, compared with $1.83 billion in second quarter 2007.
  • Worldwide Electronics & Other General Merchandise sales grew 58% to $1.53 billion in second quarter 2008, compared with $0.97 billion in second quarter 2007, and increased to 38% of worldwide net sales compared with 34%.
  • North America segment sales, representing the Company’s U.S. and Canadian sites, were $2.17 billion, up 35% from second quarter 2007.
  • International segment sales, representing the Company’s U.K., German, Japanese, French and Chinese sites, were $1.89 billion, up 47% from second quarter 2007, and increased to 47% of worldwide net sales compared with 45%.
  • Over 400,000 developers have registered to use Amazon Web Services (AWS), up more than 30,000 from last quarter.

These numbers were significantly higher than Wall Street expected and signal that consumers is still spending money they just happen to be spending it at Amazon and not other sites. Amazon now should be considered a bell weather stock that signals the strength of ecommerce.

Just my 12%

8 comments:

Nathan said...

Nice call on the earnings. Any word on the FBA numbers?

Nate

Anonymous said...

Earnings were as good as they first looked.

Stock down in AH.

Revenue In Line, EPS, Operating Income Off http://finance.yahoo.com/tech-ticker/article/42024/Amazon-Q2%3A-Revenue-In-Line%2C-EPS%2C-Operating-Income-Off

Anonymous said...

Sorry that should say, weren't as good as they first looked.

Randy Smythe said...

Yeah, that is what I'm hearing on the conference call. It sure explains why the share price is down After Hours.

That is usually the way it goes with Amazon. As soon as I have a chance to read through the transcript I will be able to get a better feel for the situation.

Thanks for the comment!

Randy Smythe said...

Looks like the market has digested the numbers from the call and it is reflecting in the AH (after Hours) trading.

The share price is once again trading above the closing price by close to 1%

Looks like investors believe this was a good quarter for Amazon and the guidance for the rest of the years is acceptable

ms.pat said...

I'm happy - not so much that Amazon is doing okay but that I found this from Jim Cramer about Ebay...and when Cramer talks investors listen:

EBay (EBAY) -- “People just don’t like the stock. This is the one dot com I can’t get behind. Someone should buy them and put them out of their misery. Sell, Sell.”

Guess I'm into revenge because I want to see Donahoe fail...utterly, miserably and with such finality that he can find no other company who wants him. His ideas have hurt too many people who depended on ebay and he deserves to pay for it.

Anonymous said...

Speaking of Jim Cramer, I heard him remark sometime earlier in the year, not to buy Ebay. He said something like "this management doesn't have a clue what they're doing." How prophetic!

Amazon seems like a class company all the way-smart, know where they're going, great at what they do. Compare them to Ebay-like shiny apples to spolied, black bananas.

It's such a shame what can happen to a solid, bright company when lead by misguided, ego-driven people. We're watching a tragedy unfold.

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