Amazon Stock Flat After Strong Earnings Report

Lauren Indvik2013-04-25 20:42:28 UTC

After missing analysts' expectations for three consecutive quarters, Amazon beat the Street's forecast, reporting earnings of $0.18 per share compared to earnings of $0.28 per share last year. Wall Street analysts were expecting earnings of $0.10 per share.

Despite the good news, Amazon's stock was up only 1% to approximately $277 per share in after-hours trading.

The report shows that sales continued to grow at a slightly slower clip in Q1, up 22% year-over-year to $16.07 billion. Growth for the last four quarters has averaged 28%. Operating cash flow increased 39% to $4.25 billion. Free cash flow declined 85% to $177 million, which Amazon attributes to its $1.4 billion investment in property and corporate office space at its headquarters in Seattle.

Amazon said its net sales and operating income were negatively impacted by changes in foreign exchange rates, to the tune of tens of millions of dollars.

The company expects to have a slower second quarter, with net sales in the range of $15.35 billion, up 17.5% from Q2 2012, and a total operating income loss of about $165 million.

Image courtesy of iStockphoto, PinkTag

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