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Dec 31, 2019
Amazon Q4 2019 Earnings Report
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.
Key Takeaways
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.
Revenue by Segment
Revenue by Geographic Location
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.
Positive Outlook
- 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.
Challenges Ahead
- Results are inherently unpredictable and may be materially affected by many factors.
- Fluctuations in foreign exchange rates.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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