- Amazon’s net sales for the fourth quarter were $187.79 billion, marking a 10% year-over-year increase, matching the estimated $187.32 billion.
- Online stores achieved net sales of $75.56 billion, showing a 7.1% rise and slightly beating the estimate of $74.71 billion.
- Physical stores saw a net sales increase to $5.58 billion, up 8.3% and surpassing the estimate of $5.4 billion.
- Third-party seller services recorded net sales of $47.49 billion, up 9% year-over-year, though slightly below the $48.02 billion estimate.
- Subscription services brought in $11.51 billion, a 9.7% increase, but slightly under the projected $11.58 billion.
- Amazon Web Services (AWS) net sales grew by 19% to $28.79 billion, closely aligning with the $28.82 billion estimate.
- In North America, net sales were $115.59 billion, reflecting a 9.5% increase, beating the forecasted $114.27 billion.
- International net sales reached $43.42 billion, up 7.9%, although below the expected $44.13 billion.
- Amazon’s EPS (earnings per share) was $1.86, exceeding the estimated $1.50.
- Operating income surged by 61% year-over-year to $21.20 billion, surpassing the estimate of $18.84 billion.
- The operating margin improved to 11.3%, above the previous year’s 7.8% and the estimated 10.1%.
- North America operating margin increased to 8%, higher than the previous year’s 6.1% and above the 6.48% estimate.
- International operating margin turned positive at 3%, improving from last year’s -1% and aligning closely with the 3.08% estimate.
- Fulfillment expenses were $27.96 billion, a 7.2% increase, slightly below the estimated $28.45 billion.
- The seller unit mix increased to 62%, higher than last year’s 61% and surpassing the 60.2% estimate.
- Future expectations for net sales are set between $151.0 billion and $155.5 billion for the first quarter of 2025, indicating a possible growth of 5% to 9% from the first quarter of 2024.
- Operating income for the next quarter is projected between $14.0 billion and $18.0 billion, compared to $15.3 billion in the first quarter of 2024.
- Amazon shares dropped 2.2% in post-market trading, closing at $233.49 with a volume of 40,752 shares traded.
Amazon.com Inc on Smartkarma
Independent analysts on Smartkarma, such as Baptista Research and MBI Deep Dives, are providing valuable insights into Amazon.com Inc. The research report by Baptista Research, titled “Amazon’s Secret Profit Playbook: How AWS, Prime, and Ads Are Transforming the Future!”, emphasizes strong revenue growth and operational improvements in Amazon’s third quarter of 2024. With revenues reaching $158.9 billion and a noteworthy operating income increase of 56% year-over-year to $17.4 billion, the analysis suggests a positive outlook despite heavy investments in technology and infrastructure.
Additionally, MBI Deep Dives shared a bullish perspective in their report “Amazon 3Q’24 Update,” highlighting impressive growth rates in all business segments except 1P. Notably, AWS and advertising grew at 19% year-over-year, contributing to Amazon’s overall success. The research points out North America and international sales growth at +9% and +12%, showcasing a solid performance across different geographical regions for Amazon.com Inc.
A look at Amazon.com Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Smartkarma Smart Scores provide an insightful glimpse into the long-term outlook for Amazon.com Inc. With a high Growth score of 4 and Momentum score of 5, Amazon.com Inc is positioned for strong expansion and market performance. Its innovative strategies and strong market presence contribute to this positive outlook.
Despite lower scores in Value and Dividend, Amazon.com Inc‘s Resilience score of 3 indicates a sturdy business model capable of weathering economic uncertainties. As an online retailer offering diverse products and services, Amazon.com Inc is well-positioned to capitalize on evolving consumer trends and maintain its competitive edge in the market over time.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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