NASDAQ$AMZN

Amazon.com Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Amazon's Q4 2019 results were announced with a 21% increase in net sales, reaching $87.4 billion, and net income rising to $3.3 billion.

Amazon reported a strong Q4 2019, with net sales increasing by 21% to $87.4 billion. Operating income also saw a slight increase to $3.9 billion, and net income rose to $3.3 billion, or $6.47 per diluted share.

  • Net sales increased by 21% to $87.4 billion, compared to $72.4 billion in Q4 2018.
  • Operating income increased to $3.9 billion, up from $3.8 billion in Q4 2018.
  • Net income increased to $3.3 billion, or $6.47 per diluted share, compared to $3.0 billion, or $6.04 per diluted share, in Q4 2018.
  • Prime membership saw record growth, with over 150 million paid members worldwide.

Headline financials

Total Revenue

$87.4B

Previous: $72.4B+20.8%
EPS (adj)

$0.32

Previous: $0.30+6.7%
Operating margin

4.4%

No prior period
Net Income

$3.27B

No prior period
Operating Income

$3.88B

No prior period

Revenue & EPS history

Amazon · Revenue · Quarterly

$87.4B

Q4 2019+20.8%vs Q4 2018
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Amazon · $87.4B total across 3 segments · Q4 2019

  • North America
    $53.7B
  • International
    $23.8B
  • AWS
    $9.95B

Forward guidance

Amazon provided forward-looking statements for Q1 2020, anticipating net sales between $69.0 billion and $73.0 billion, representing a growth of 16% to 22% compared to Q1 2019. Operating income is expected to be between $3.0 billion and $4.2 billion, compared to $4.4 billion in Q1 2019. This guidance includes approximately $800 million lower depreciation expense due to an increase in the estimated useful life of our servers beginning on January 1, 2020.

Tailwinds

  • Net sales are expected to grow between 16% and 22% compared with first quarter 2019.
  • Anticipates a favorable impact of approximately 5 basis points from foreign exchange rates.
  • Guidance includes approximately $800 million lower depreciation expense.
  • Increase in the estimated useful life of servers beginning on January 1, 2020.
  • Continued investments in technology, infrastructure, and logistics.

Headwinds

  • Results are inherently unpredictable and may be materially affected by many factors.
  • Fluctuations in foreign exchange rates.
  • Changes in global economic conditions and customer spending.
  • Competition and management of growth.
  • Potential fluctuations in operating results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+0.7%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+0.5%

Avg return

30 days after

47%

31 / 66 earnings

Positive

+18.4%

Q1 2012

Best reaction

-10.6%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%+4.0%+2.9%
Q4 2025-5.6%-8.4%-4.3%
Q3 2025+1.9%+12.3%+4.6%
Q2 2025-6.2%-5.0%-2.2%
Q1 2025-0.2%-0.8%+7.8%
Q4 2024-4.1%-4.1%-16.6%
Q3 2024+2.7%+3.5%+7.9%
Q2 2024-10.2%-13.4%-4.5%
Q1 2024-1.1%+2.9%-0.9%
Q4 2023+10.7%+9.0%+14.8%
Q3 2023+5.2%+9.6%+20.9%
Q2 2023+8.9%+9.1%+7.7%
Q1 2023+0.4%-1.3%+14.4%
Q4 2022-1.7%-2.9%-9.7%
Q3 2022-10.6%-16.3%-19.2%
Q2 2022+11.6%+10.9%+8.1%
Q1 2022-10.1%-10.1%-16.7%
Q4 2021+4.7%+7.2%-3.3%
Q3 2021-0.6%-2.4%+3.3%
Q2 2021-8.3%-7.3%-7.7%
Q1 2021+0.3%-4.2%-6.8%
Q4 2020-0.9%+0.3%-10.9%
Q3 2020-4.0%-3.6%+1.0%
Q2 2020+4.3%+3.5%+12.1%
Q1 2020-3.7%-2.3%+2.9%
Q4 2019+8.1%+10.3%+1.4%
Q3 2019-0.0%+0.0%-0.9%
Q2 2019-2.9%-5.1%-12.6%
Q1 2019+2.6%+1.3%-4.1%
Q4 2018-2.6%-0.7%+0.1%
Q3 2018-1.3%-8.0%-9.7%
Q2 2018-2.5%-4.6%+2.2%
Q1 2018+7.7%+8.4%+10.3%
Q4 2017-1.4%-0.6%+3.4%
Q3 2017+13.2%+13.6%+21.9%
Q2 2017-3.1%-5.4%-10.2%
Q1 2017+1.7%+4.1%+9.5%
Q4 2016-2.7%-2.4%+2.1%
Q3 2016-5.6%-4.5%-5.1%
Q2 2016+3.0%+3.2%+4.4%
Q1 2016+8.7%
Q4 2015+0.6%
Q3 2015+7.8%
Q2 2015+8.4%
Q1 2015+14.2%
Q4 2014+16.6%
Q3 2014-8.3%
Q2 2014-9.5%
Q1 2014-6.4%
Q4 2013-6.7%
Q3 2013+11.2%
Q2 2013+4.3%
Q1 2013-5.2%
Q4 2012-1.2%
Q3 2012+4.3%
Q2 2012+9.4%
Q1 2012+18.4%
Q4 2011-6.5%
Q3 2011-9.0%
Q2 2011+4.6%
Q1 2011+6.9%
Q4 2010-8.0%
Q3 2010+2.4%
Q2 2010-1.3%
Q1 2010-1.9%
Q2 2009-10.2%

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