Categories: Tech & Society

Amazon Q4 Sales Up 22 Percent to @21.3B, Net Income Down 45 Percent to $97M

amazon-boxamazon-box

Amazon announced its lower-than-expected fourth quarter earnings yesterday. Net income decreased 45% to $97 million in the fourth quarter, or $0.21 per diluted share, compared with $177 million, or $0.38 per diluted share, in fourth quarter 2011.

Net sales increased 22% to $21.27 billion in the fourth quarter, compared with $17.43 billion in the fourth quarter 2011. Analysts expected earnings of $0.27 cents a share, on $22.26 billion in sales. The expectations of course are high because the fourth quarter includes the holiday shopping season.

“We’re now seeing the transition we’ve been expecting,” said Jeff Bezos, founder and CEO of Amazon.com. “After five years, eBooks is a multi-billion-dollar category for us and growing fast – up approximately 70% last year. In contrast, our physical book sales experienced the lowest December growth rate in our 17 years as a bookseller, up just 5%. We’re excited and very grateful to our customers for their response to Kindle and our ever-expanding ecosystem and selection.”

Operating cash flow increased 7% to $4.18 billion for the trailing twelve months, compared with $3.90 billion for the trailing twelve months ended December 31, 2011. Free cash flow decreased 81% to $395 million for the trailing twelve months, compared with $2.09 billion for the trailing twelve months ended December 31, 2011.

For the Year 2012

Net sales increased 27% to $61.09 billion, compared with $48.08 billion in 2011. Excluding the $854 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales grew 29% compared with 2011.

Operating income decreased 22% to $676 million, compared with $862 million in 2011. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the year on operating income was $14 million.

Net loss was $39 million, or $0.09 per diluted share, compared with net income of $631 million, or $1.37 per diluted share, in 2011.

 

Graph Image Credit: TechCrunch

Prateek Panda

Prateek is the Founder of TheTechPanda. He's passionate about technology startups and entrepreneurship and enjoys speaking to new founders every day. Prateek has also been consistently regarded as one of the top marketing experts in the region.

Recent Posts

Funding alert: Tech startups that raked in moolah this month

The Tech Panda takes a look at recent funding events in the tech ecosystem, seeking…

2 days ago

Bitcoin in 2025: Still a Smart Investment?

The first time I heard about Bitcoin was in the summer of 2018 during a casual conversation…

3 days ago

An Open-Source Exploit That Redefined Cybersecurity

Open source software is everywhere—used in almost every modern application—but the security challenges it faces…

3 days ago

KIP Protocol completely denies involvement in $LIBRA token incident

Argentine President Javier Milei is facing impeachment after the cryptocurrency he endorsed called $LIBRA crashed…

4 days ago

Will India reach US$500 B in electronics production by 2030?

India is targeting US$500 B in electronics production by 2030. Last year July, Niti Aayog…

1 week ago

How India can accelerate its ongoing AI revolution with Intelligent Engineering 

The IMF predicts that more Indians will use AI every day than in any other…

1 week ago