Amazon Jumps on Q4 Results Despite Missing Estimates; Guidance Also Weak
Amazon (NASDAQ: AMZN) released its fiscal fourth-quarter earnings results after the closing bell on Tuesday. Ahead of the report, AMZN closed down more than 5.60 percent to $260.35. In the after hours, however, the stock was last trading up more than 9 percent to $285.
The bullish reaction in the name is leaving some traders scratching their heads. The company reported a sharp decline in profit, missing Wall Street analysts' consensus estimates. Revenue and guidance was also below expectations.
Amazon reported fourth-quarter net income of $97 million or $0.21 per share, compared to $177 million or $0.38 per share, in last year's fourth-quarter. This missed Wall Street consensus EPS estimates of $0.29.
Net sales in the quarter were up 22 percent to $21.27 billion versus $17.43 billion last year. This also missed consensus estimates of $22.26 billion.
Looking ahead to the first-quarter, Amazon said that it expects operating income between a loss of $285 billion and a profit of $65 million. Sales are expected to be between $15 billion and $16.6 billion. This is below current consensus revenue estimates of $16.86 billion for the first-quarter.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.