Amazon on Thursday issued first-quarter guidance that came in light of estimates, overshadowing better-than-expected revenue for the fourth quarter. The stock slid after hours, erasing most its rally from the regular trading day. Here are the key numbers:
- Earnings: 3 cents per share
- Revenue: $149.2 billion vs $145.42 billion expected, according to Refinitiv estimates
Here’s how other key Amazon segments did during the quarter:
- Amazon Web Services: $21.4 billion vs $21.87 billion expected, according to StreetAccount
- Advertising: $11.56 billion vs $11.38 billion expected, according to StreetAccount
It’s not immediately clear if the reported earnings are comparable to the Refinitiv analyst estimate of 18 cents per share.
Amazon closed out its slowest year of growth in its quarter century as a public company. Revenue for the year increased 9% as inflationary pressures and rising rates put a damper on consumer spending. The stock price lost almost half its value in 2022.
The e-retailer said it expects to post first-quarter revenue of between $121 billion and $126 billion, representing year-over-year growth of 4% to 8%. Analysts were expecting sales to come in at $125.1 billion, according to Refinitiv.
Amazon’s report, along with earnings from Apple and Alphabet, wrap up a mixed earnings season for the mega-cap tech companies.
Apple reported its first revenue decline since 2016 on Thursday, and Alphabet missed on earnings and revenue. On Wednesday, Facebook parent Meta topped estimates and gave an optimistic outlook on its expenses.
Sales in Amazon’s online stores segment contracted 2% year over year. The company has been contending with slowing sales as rising gas and food prices forced consumers to pull back discretionary spending. The pandemic-fueled e-commerce boom has also fizzled with consumers increasingly returning to physical retailers.
CEO Andy Jassy, who succeeded founder Jeff Bezos at the helm in July 2021, has spent the past year working to reel in costs. In…
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