1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
James Li
James Li
Articles (755)  | Author's Website |

Amazon Dips on Lower 1st-Quarter Revenue Growth

Company reports revenue deceleration across its key businesses despite margins remaining strong

April 25, 2019 | About:

Amazon.com Inc. (NASDAQ:AMZN), the Seattle-based e-commerce giant, said on Thursday that revenue for the quarter ending March 2018 increased 17% from the prior-year quarter.

The online retailer reported net income of $3.6 billion, or $7.09 per diluted share, up $2.37 from the analyst estimate of $4.72.

Company reports revenue deceleration in both domestic and international markets

CNBC columnist Eugene Kim said Amazon’s 17% net sales growth represented the “slowest expansion” since first-quarter 2015, when net sales increased just 15%. Net sales growth in domestic markets and international markets increased 17% and 9%, down from 46% and 34% during first-quarter 2018.

1009899850.png

Management said during the earnings call one likely reason for the lower growth in international markets was a “quiet period” in India. Although unit growth was just 10% for the quarter, the unit growth excludes Amazon’s fast-growing businesses like Amazon Web Services, which increased 41% year over year.

Margins remain strong yet stock slightly falls

Amazon closed at $1,902.25, giving a market cap of $936.01 billion. Despite this, the stock fell to a low of $1,901.75 in after-hours trading.

As of Thursday, Bill Gates (Trades, Portfolio)’ Microsoft Corp. (NASDAQ:MSFT) and Warren Buffett (Trades, Portfolio)’s top holding Apple Inc. (NASDAQ:AAPL) are the two most valuable companies in the U.S., with market caps of $990.87 billion and $967.95 billion.

681125531.png

GuruFocus ranks Amazon’s profitability 9 out of 10 on several positive signs, which include expanding profit margins, a strong Piotroski F-score of 7 and a business predictability rank of four stars. The company’s three-year revenue growth rate of 29.60% and three-year Ebitda growth rate of 50% are outperforming over 90% of global competitors.

1492394872.png

Gurus with large positions in Amazon include Ken Fisher (Trades, Portfolio), Spiros Segalas (Trades, Portfolio) and Chase Coleman (Trades, Portfolio)’s Tiger Global Management.

d5874ce0-67a4-11e9-be8c-fb5d15b9e42d.png

Disclosure: No positions.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

About the author:

James Li
I am an editorial assistant and researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

Visit James Li's Website


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Performances of the stocks mentioned by James Li


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK