Amazon reports nearly $2 billion in profit, blowing past Wall Street expectations for holiday quarter

0
634
Jeff Bezos, chief executive officer of Amazon
NEW YORK, NY - DECEMBER 14: Jeff Bezos, chief executive officer of Amazon, listens during a meeting of technology executives and President-elect Donald Trump at Trump Tower, December 14, 2016 in New York City. This is the first major meeting between President-elect Trump and technology industry leaders. (Photo by Drew Angerer/Getty Images)

by

Amazon reported quarterly financials after the bell Thursday for its fourth quarter, the all-important holiday season for the e-commerce giant. And its numbers had some people doing a double take, after earnings per share came in at $3.75, more than double the $1.85 that analysts surveyed by Yahoo Finance were estimating. 

Net income was $1.9 billion for the quarter. For the full 2017 year, it was $3 billion. This was partly due to a tax cut that benefited Amazon to the tune of $789 million.

It’s a far cry from the days when Amazon was unprofitable. For years, Amazon was able to get away with convincing investors that they should bet on its future growth.

Net sales grew to a massive $60.5 billion, up 38% from the prior year. Analysts had been expecting $59.83 billion.

Amazon Web Services, the cloud services business, accounted for $5.1 billion in revenue for the quarter. This is up from $3.5 billion in same timeframe the previous year.

The stock ticked up 3% in initial after-hours trading.

“Our 2017 projections for Alexa were very optimistic, and we far exceeded them. We don’t see positive surprises of this magnitude very often — expect us to double down,” said Jeff Bezos, Amazon founder and CEO, in a statement.

The company also touted the success of its Prime membership, saying that the service accounted for 5 billion items shipped last year.

Amazon has a market cap of $677 billion and recently reached record highs.


 

Original story https://techcrunch.com/2018/02/01/amazon-blows-past-wall-street-expectations-for-holiday-quarter

Katie RoofKatie Roof is a senior writer and video host at TechCrunch. She has an interest in late stage venture capital, and is especially enthusiastic about commerce, social media and apps. Previously, Roof was a tech reporter for FOXBusiness.com and has been a contributor at Reuters, TheStreet and Forbes. She has held television production roles at CNN and Bloomberg TV.

Featured Image: Drew Angerer/Getty Images