Release out: Solid quarter in a weak economy. Revenue in line, EPS through roof once including a $53 million one time non-cash gain from the sale of a European DVD business.
EPS: 37 cents (GAAP) vs 26 cents consensus. We’d originally tried to back out the results of the $53 million sale from this number to get a “real” EPS. But, as a reader gently pointed out to us, we weren’t recalculating taxes, etc. So we’ll leave this be for now.
Revenue: $4.06 billion, up 41% y/y, vs. $3.96 billion consensus (original guidance $3.88 to $4.07B) Net out $0.18 billion in Forex and sales are up 35%.
Operating income: An impressive $217 million. Guidance was $120 million to $160 million. So even factoring out $17 million in Forex and $53 million for the sale, Amazon still posted OI of $147 million.
Guidance: Q3 Revenues at the high end of current Street expecations: $4.2 – $4.425 billion. Full year a little less aggressive: $19.35 – $20.10 billion.
*We initially misjudged the quarter relative to expectations as a result of the one-time gain. Apologies.