Photo: Associated Press
The numbers are out!Amazon had a big miss on earnings, and the shares fell 6% in reaction, but they’ve bounced back and now they’re basically flat.
(The stock went from -0.11% to -1% while we wrote that last sentence.)
Revenue was a beat, but EPS was off significantly. The operating income guidance is also well off.
It appears Amazon is making big investments.
Todd Bishop at Geekwire notes Amazon added 4,200 employees this quarter compared to last, bringing its total to 37,900. That’s up a whopping 45% on a year over year basis.
In his canned statement for the release, CEO Jeff Bezos said in the release: “We love inventing on behalf of customers and have never been more excited about the long-term opportunities.”
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Here’s how Amazon did in comparison to expectations:
- EPS: $0.44 reported vs. $0.61 expected (A huge miss, we’re trying to figure out what happened here …)
- Operating income: $322 million versus $365 million expected
- Revenue: $9.86 vs. $9.5 billion expected
- Q2 operating income guidance: $95-$245 million vs. $365 million expected
- Q2 revenue guidance: $8.85 billion – $9.65 billion vs. $8.7 billion expected
In the earnings release Jeff Bezos said:
“In the last 90 days, we announced Kindle with Special Offers, Kindle Library Lending, Audible audiobooks on Kindle, Appstore for Android, Amazon for Windows Phone 7, Checkout by Amazon in both Germany and the U.K., a Kindle Store in Germany, Cloud Drive, Cloud Player, and Prime Instant Video – just to call out a few of the things we’ve been working on … We love inventing on behalf of customers and have never been more excited about the long-term opportunities.”
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