Earnings came in $0.51 in earnings per share and revenues came up 20% to $25.59 billion. Thomson Reuters had estimates of $0.66 per share and $26.06 billion in revenue. Amazon’s operating margin was only 2% during the fourth quarter.
Amazon is targeting first quarter results to have an operating loss of $200 million to a gain of $200 million. That could translate to -$0.42 to a gain of $0.42 per share if you use straight math. Sales are being put at $18.2 billion to $19.9 billion. Thomson Reuters had estimates of 0.54 in earnings on revenue of $19.67 billion.
Amazon shares closed up 4.9% at $403.01 going into earnings, but the stock was down 7.8% around $372 in the after-hours reaction.
Amazon trades at a crazy P/E ratio, and its margins have been allowed to operate at close to zero for long enough. Maybe investors are finally deciding that a company that takes over retail segments and crushes brick and mortar rivals needs to do so with clear profitability rather than at a non-profit status.
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