Amazon.com Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2014; Provides Earnings Guidance for the First Quarter of 2015
January 30, 2015 at 02:31 am IST
Share
Amazon.com Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company reported total net sales of $29,328 million against $25,587 million for the same period in the last year. Income from operations was $591 million against $510 million for the same period in the last year. Income before income taxes was $429 million against $451 million for the same period in the last year. Net income was $214 million or $0.45 per diluted share against $239 million or $0.51 per diluted share for the same period in the last year. Net cash provided by operating activities was $6,715 million against $5,578 million for the same period in the last year. Purchases of property and equipment, including internal-use software and website were $1,144 million against $880 million for the same period in the last year. Excluding the $895 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 18% compared to fourth quarter 2013.
For the year, the company reported total net sales of $88,988 million against $74,452 million for the same period in the last year. Income from operations was $178 million against $745 million for the same period in the last year. Loss before income taxes was $111 million against income before income taxes of $506 million for the same period in the last year. Net loss was $241 million or $0.52 per diluted share against net income of $274 million or $0.59 per diluted share for the same period in the last year. Net cash provided by operating activities was $6,842 million against $5,475 million for the same period in the last year. Purchases of property and equipment, including internal-use software and website were $4,893 million against $3,444 million for the same period in the last year. Excluding the $636 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 20% compared with 2013. Trailing 12-month free cash flow decreased to $1.95 billion.
The company provided earnings guidance for the first quarter of 2015. Net sales are expected to be between $20.9 billion and $22.9 billion, or to grow between 6% and 16% compared with first quarter 2014. Operating income is expected to be between a loss of $450 million and income of $50 million, compared to operating income of $146 million in first quarter 2014. This guidance includes approximately $450 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded and that there are no further revisions to stock-based compensation estimates.
Amazon.com, Inc. is one of the world leaders in on-line distribution of products to the general public. The group also operates a marketplace activity, allowing individuals and distribution companies to conduct their purchase and selling transactions for goods and services. The activity is organized around three families of products and services:
- electronic and computer products: toys, cameras, computers, laptops and peripherals, TVs, stereo systems, readers, wireless communication products, etc. Amazon.com also offers kitchen and garden equipment, clothing, beauty products, etc.;
- cultural products: books, musical products, video games and DVDs;
- other: primarily Internet interface and application development services.
Net sales break down by source of income between sales of services (55.5%) and sales of products (44.5%).
Net sales are distributed geographically as follows: the United States (68.8%), Germany (6.5%), the United Kingdom (5.9%), Japan (4.5%), and other (14.3%).
Amazon.com Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2014; Provides Earnings Guidance for the First Quarter of 2015