Thursday , February 25 2021

Beats from the Amazon; Guidance, Main Growth Raising Concerns By Investing.com



© Reuters.

Investing.com – Amazon.com (NASDAQ 🙂 fell on Thursday as investors digested strong fourth-quarter results tempered by the first-quarter guidance and a decline in growth in subscription services, which includes the popular Prime .

The shares fell 0.7% in the post-market.

Amazon reported earnings per share of $ 6.04 on revenue of $ 72.38 billion in the fourth quarter. Analysts polled by Investing.com predicted EPS of $ 5.64 on revenue of $ 71.87 billion.

But Amazon said first-quarter sales were between $ 56 billion and $ 60 billion, just below forecasts of $ 61.04 billion.

It said fourth-quarter subscription service revenue, which includes Prime delivery and Prime Video offerings, increased 26% year-over-year, excluding the impact of the exchange rate, well below recent trends.

Revenue from subscription services grew more than 50% over the same period last year in the first three quarters of 2018.

The e-commerce giant predicted operating income of $ 2.3 billion to $ 3.3 billion in the first quarter, online, but on the low side of the $ 3 billion estimate.

Solid earnings, but the cautious orientation of revenue, are becoming a habit for the company. This is the third consecutive quarter that their revenue orientation is below consensus.

In the fourth quarter, net sales in North America, its largest market, increased 18.3% to $ 44.12 billion.

Revenue in its Amazon Web Services cloud business rose 45.3 percent to $ 7.43 billion to surpass the $ 7.26 billion estimate. Microsoft (NASDAQ 🙂 reported on Wednesday that revenue from its Azure cloud computing business rose 76% in its last quarter.

Reuters contributed to this report.

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