Shares of Amazon.com Inc. (NASDAQ: AMZN) ar responding favorably to its earnings announcement. The internet retail giant posted $0.37 EPS and $4.06 Billion in revenues versus estimates of $0.26 non-GAAP EPS on $3.96 Billion. The company’s prior guidance for this quarter was $3.875 to $4.075 Billion in revenues, so this was at the very high end of that range.
Guidance is as follows:
- The retail giant also gave guidance of $4.2 to $4.425 Billion inrevenues for Q3 versus $4.23 Billion in revenues expected. It alsosees operating income of $115 to $160 million (after GAAP items).
- For 2008 it guided sales to $19.35 to $20.1 Billion in revenues versusestimates of $19.6 Billion in revenues and versus a prior range of$19.1 to $20 Billion. The company gave operating income guidance for2008 of $745 to $920 million (after GAAP items), which is within therange already offered of $740 to $940 million.
Amazon shares closed up 3.8% at $70.54 in regular trading and sharesinitially rose to over $74.00 on the report. On last look shares areactually down under the $70.00 level now as it appears that traders areinterpreting the upside for 2008 as being front-end loaded from thescore in this last quarter more than any blow-out in Q3 or in theimportant Q4.
Despite the sell-off from after-hours highs, it’s hard to imagine that this would be a disappointment to Wall Street when you consider the environment. But Wall Street is frequently like a spoiled child always wanting more no matter what the economy is like.
Jon C. Ogg
July 23, 2008
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