Amazon CEO Andy Jassy speaks at the Bloomberg Technology Summit in San Francisco on June 8, 2022.
David Paul Morris | Bloomberg | Getty Images
Amazon reported better-than-expected earnings and revenue for the fourth quarter, but it gave disappointing guidance for the current period. The stock slipped in extended trading.
Here are the numbers:
- Earnings: $1.86 vs. $1.49 per share expected
- Revenue: $187.79 billion vs. $187.30 billion expected
Wall Street is also watching several other numbers in the report:
- Amazon Web Services: $28.8 billion vs. $28.8 billion, according to StreetAccount
- Advertising: $17.3 billion vs. $17.4 billion, according to StreetAccount
Amazon said sales this quarter are expected to be between $151 billion and $155.5 billion. Analysts were expecting $158.5 billion, according to LSEG.
“This guidance anticipates an unusually large, unfavorable impact” from foreign exchange rates, the company said. The impact amounts to $2.1 billion, or 1.5%, Amazon said.
The U.S. dollar index — which measures the greenback against a basket of rivals — hit its highest level in more than two years last month, ahead of President Donald Trump’s inauguration. The dollar climbed steadily from late November through mid-January and has since fallen slightly.
Based on Amazon’s forecast, the company only expects revenue growth of 5% to 9% in the first quarter. At the low end of the range, that would mark the slowest growth on record. Amazon went public in 1997.
Sales in Amazon’s cloud division were a hair below consensus estimates, but it’s growing faster than the same quarter last year. Revenue grew 19% during the quarter compared to 13% a year ago.
This is breaking news. Please check back for updates.
Source: www.cnbc.com