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Amazon earnings: AMZN shares rise after solid report

Posted Jul 24th 2007 4:55PM by Beth Gaston Moon (RSS feed)
Filed under: After the Bell, Major Movement, Earnings Reports, Good news, Amazon.com (AMZN)

Strong sales growth and the popularity of its Amazon Prime offering helped send Amazon.com (NASDAQ: AMZN) earnings more than 250% higher on a year-over-year basis. In its second quarter, the online retailer founded by Jeff Bezos in 1994 posted net income of $78 million, or 19 cents per share. Revenue was 35% higher at $2.89 billion, up from $2.14 billion in the year-ago period. According to the latest estimates reported by Thomson First Call, analysts were expecting earnings per share of 16 cents from Amazon on revenue of $2.81 billion.

According to the company's press release, North American sales grew by 38% in the latest quarter, while International sales were up 31%. Mr. Bezos noted in the release that the firm's "strong revenue growth ... was fueled by low prices and the added convenience of Amazon Prime," a feature that provides unlimited two-day shipping for an annual fee of $79.

Continue reading Amazon earnings: AMZN shares rise after solid report

Amazon needs to heavily pitch its "Prime" program for this holiday's shopping season

Posted Oct 27th 2006 1:18PM by Brian White (RSS feed)
Filed under: Earnings Reports, Good news, Products and Services, Competitive Strategy, Amazon.com (AMZN)

With Amazon.com, Inc.'s (NASDAQ:AMZN) latest quarterly results showing an operating cash flow that declined 11% to $587 million for the trailing twelve months -- compared with $661 million for the trailing twelve months ended September 30, 2005 -- Amazon still needs bright spots in sales growth among all its categories to look attractive to investors.

It's true that Amazon has been adding capex into its business in a large way to pad the future outlook for the company. This is a good thing that also leaves some bad financial marks in the short-term. But, businesses aren't in business for the short term. That is, unless we all close our eyes and look back to the 2000-2001 timeframe.

Amazon's free cash flow decreased 23% to $366 million for the trailing twelve months before it's latest quarterly results, compared with $475 million for the trailing twelve months ended September 30, 2005, driven primarily by its increased expenditure in technology and content -- that needed but nasty capex thing.

Continue reading Amazon needs to heavily pitch its "Prime" program for this holiday's shopping season