Photo: Associated Press
Amazon’s earnings just hit, and the stock is down 10% in after hours trading.Looks like investors don’t like the weak operating income Amazon reported. (It was a huge miss.) They also didn’t like the weak guidance Amazon provided.
In the release Jeff Bezos played up the fact that Amazon had its first $10 billion quarter in its history, and the fact that Kindle eBooks are out selling paperbacks on Amazon.com.
Once again, Amazon didn’t disclose how many Kindles it sold, other than saying it’s, “millions.”
On the earnings call, Amazon was asked if gross margins were worse than expected because of hot Kindle and eBook sales. The company avoided the question, with CFO Thomas Szkutak just saying, “We haven’t been talking about gross margins because we don’t think it’s that meaningful,” and, “We have a very broad mix of businesses in geographies going into that number.”
Here’s what the Amazon reported versus (the Street via Citigroup):
Revenue: $12.95 billion versus ($13 billion)
Operating Income: $622 million versus ($650 Million)
EPS: $0.91 versus ($0.88)
Q1 Revenue guidance: $9.5 billion versus ($9.3 billion)
Q1 Operating Income guidance: $463 versus ($578 million)
We’ll be updating the post as we move along, so click here for the latest or refresh your browser.