Tuesday, April 26, 2011

Amazon.com (AMZN) Misses Big on EPS, Despite Revenue Beating Estimates

Quite a big miss afterhours for Amazon.com - EPS of 44 cents v 61 expectation.  This despite beating analysts expectations on the top line of $9.5B by nearly $400M.  When Amazon misses it is usually by a few cents, so this is an interesting report.  And revenue was still up 38% year over year (with forex adjustment), and 36% excluding the punishment in the dollar.  Could be some impact from Japan where just over a tenth of sales come from. The stock is all over the place in after hours.

The online retailer said it earned $201 million, or 44 cents a share, down from 66 cents a year earlier, on revenue of $9.86 billion, up from $7.13 billion in the year-ago period.

Analysts were expecting the company to post earnings of 61 cents a share on revenue of $9.54 billion.

The company’s second-quarter guidance also fell below expectations.  Net sales are expected to be between $8.85 billion and $9.65 billion, or to grow between 35% and 47% compared with second quarter 2010.

We are back to a period where bad news does not matter much to the market (other than to the specific company reporting it) so we'll see if this is forgotten by tomorrow morning.

Full report here.

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