AMZN Drops Then Jumps After Smashing EPS But Missing On Revenue, Guidance

Zero Hedge | 7/26/2018 | Staff
ziggy1023 (Posted by) Level 3
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Amazon appears to have done it again, and one day after a dramatic collapse by Netflix, and shortly after the latest tweet from Trump suggested the president could crack down on the world's biggest online retailer, AMZN is back to its short-crushing ways, reporting EPS which smashed expectations, but missing badly on revenue while guiding well below consensus. In kneejerk response, the stock initially tumbled as much as 5% before spiking higher.

The revenue was squarely inside the company's Q1 guidance of $51-$54BN.

Amazon - Sales - % - % - Vs

More importantly, Amazon guided Q3 net sales to be between $54.0 billion and $57.5 billion (up 23%-31% vs Q3 2017), which however was well below the consensus est. $58.03B (range $55.63 billion to $59.77 billion).

Looking at Amazon's most important segment, AWS, in Q2 it generated net sales of $6.11 billion, an increase of +49% Y/Y. By comparison, in Q1 AWS generated $5.44 billion in revenue, which also grew at a 49% rate.

Line - AWS - Income - % - Profit

On the bottom line, AWS was responsible for operating income of $1.642BN, or a 26.9% profit margin, up from 25.8% last quarter. In other words, for yet another quarter,...
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