Retail

Amazon.com Giving Back Its Gains (AMZN)

Amazon.com (NASDAQ:AMZN) has posted earnings $0.19 EPS on sales of $3.26 Billion ($75 million benefit from currency effects). First Call had estimates for this past quarter at $0.18 EPS and $3.14 Billion revenues. 

Operating cash flow was $1.0 Billion. Its guidance is also out: Net sales are expected to be between $5.1 billion and $5.45 billion, First Call has estimates at roughly $5.2 Billion. Operating income is expected to be between $221 million and $291 million AFTER a $54 million charge.

Jeff Bezos keys in, “Customers continue to respond to our low prices, our free shipping, and the benefits of Amazon Prime. With our ever-increasing selection, customers are now getting this unusual level of service across many different product categories and with depth of selection in each category… In our view, putting customers first is the only reliable way to create lasting value for shareowners."

This is a solid report, but shares are down almost 8% to around $93.00 after a 10% gain in normal trading.  After a 200% run over the last year the street probably wanted a bit more.  And maybe the great Bezos laugh.

Jon C. Ogg
October 23, 2007

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