Published on March 28th, 2015 | by Daily Station Team
Amazon (NASDAQ:AMZN)Due to Announce Its 4th Quarter Reports Today
Amazon.com (NASDAQ:AMZN) is due to announcing its 4th quarterly reports today after market closingand investors are impatiently waiting for the announcement to find out about the status of this ever growing company. However, if the holiday season is any indicator of outperformance then we can investors should be happy to know that Amazon (NASDAQ:AMZN)might break the consecutive chain of quarterly losses. To be very exact Amazon (NASDAQ:AMZN)has been falling behind analysts’ estimates.
Surprisingly, investors believe that on average the stock falls by 10% at every earnings announcement so investors are quiet uncertain about this quarter’s earnings report.Consensus companies have given their estimates for the upcoming earnings report. One firm reported that the quarterly revenues will sum up to $29.6 billion whereas previous year’s revenues were $25.56 billion and this means that the company (NASDAQ:AMZN) will experience a solid growth of 16% this quarter.
Moreover, this extraordinary rise is expected because of the strong sales reported during the holiday season. The holiday season kicked off a little early this time and Amazon’s (NASDAQ:AMZN) sales rose accordingly. Moreover, the company was literally leading the ecommerce sector this holiday period.In fact the company saw an online growth rate of 26.9%.Although the company saw an overall growth in their central business region and the growth was quiet stable but the company (NASDAQ:AMZN) seems a bit worried about the 10 million Prime membership trials.
The company witness many cases of trial membership abuse and users were found using trial service several times which has proven harmful for the company as this would definitely bring down Amazon’s (NASDAQ:AMZN)earnings from the Prime memberships. Besides this, the companyhas made recent investments in other departments like cloud storage and movie production as well. But it appears that these investments might become the reason for losses.
Similarly the Wall Street is also expecting the same. They expect Amazon (NASDAQ:AMZN) to report its earnings in the range of $450.3 million with non GAAP earnings per share of $.97 and GAAP earnings per share of $0.17. Besides this, the company is expected to gain a year over year growth rate of 84.4% whereas Amazon’s (NASDAQ:AMZN) own estimates were also in between $27.3 to $30.3 billion. Moreover, another major issue for the company is their flop smart phone.
The Fire Phone which Amazon (NASDAQ:AMZN) released during their third quarter was a completely fail where the company managed to sell 35,000 sets in the first 25 days of its launch and much of the 2014 was cluttered with the failure of its Fire Phone. The company is planning to write off its Fire Phone inventory however $83 million worth Fire Phone inventory is in custody of Amazon (NASDAQ:AMZN).Amazon (NASDAQ:AMZN) also gave guidance on its profit to loss ratio which was $570 million in loss to $430 million in profit.
However, other products launched by Amazon like; Amazon Travel, Amazon Payment, Kindle Fire TV, etc may help in boosting the company’s feeble growth.