I was marveling at the analysts' estimates ahead of Amazon.com's report - the company was projected to grow revenue by 45% but see EPS shrink by half. I wondered at what point do profits matter more than revenue growth? Well, it appears the revenue growth tonight was in line but profits missed big, so it's a question for another day. The stock is down some 18% in after hours.
Revenue a tiny bit light at $10.9B vs $10.93B (it's a rounding error) but EPS missed huge - $0.14 v $0.24.
Operating margins a dismal 0.7% - this was over 3% a year ago.
Guidance for next quarter is all over the map - a huge gap of $16.45B-$18.65B revenue vs estimate of $18.2B. Operating income (loss) is expected to be between $(200) million and $250 million.
You can see we are now testing the 200 day moving average in after hours. Let's see how aggressive dip buyers are - I mean, what a value at well over 100x forward EPS.
Tuesday, October 25, 2011
Amazon.com (AMZN) Blows Up After Hours.
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