Amazon’s fourth-quarter net revenue rose 11% to $187.8bn ignoring exchange rate impacts. Growth was broad-based across all divisions, with AWS growing at the fastest pace, up 19% as expected.
Operating profit grew 61% to $21.2bn (£19.0 bn expected), driven by improvements in AWS and the ecommerce business.
Free cash flow rose from $36.8bn to $38.2bn on a trailing 12-month basis. Including leases, net debt was $48.8bn at the end of the period.
For the first quarter of the new year, net sales are expected to grow to between 5-9% to $151.0-$155.5bn. Operating profit for the quarter is expected to grow from $15.3bn to between $14.0-$18.0bn (consensus: $18.3bn).
The shares were down 3.4% in pre-market trading.
Our view
HL view to follow.
Amazon key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is not advice or a recommendation to buy, sell or hold any investment.No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.Non - independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place(including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.Please see our full non - independent research disclosure for more information.