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Amazon (AMZN) Reports Q4 Earnings: What Key Metrics Have to Say
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For the quarter ended December 2023, Amazon (AMZN - Free Report) reported revenue of $169.96 billion, up 13.9% over the same period last year. EPS came in at $1.01, compared to $0.21 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $166.26 billion, representing a surprise of +2.23%. The company delivered an EPS surprise of +24.69%, with the consensus EPS estimate being $0.81.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Amazon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Subscription services Y/Y Change: 13% versus 13.5% estimated by eight analysts on average.
Online stores Y/Y Change: 8% compared to the 6.1% average estimate based on eight analysts.
Third-party seller services Y/Y Change: 19% compared to the 14% average estimate based on eight analysts.
Headcount - Total: 1,525,000 versus 1,514,658 estimated by two analysts on average.
Net Sales- AWS: $24.20 billion versus the 13-analyst average estimate of $24.37 billion. The reported number represents a year-over-year change of +13.2%.
Net sales- Physical stores: $5.15 billion versus the 11-analyst average estimate of $5.31 billion. The reported number represents a year-over-year change of +3.9%.
Net sales- Online stores: $70.54 billion compared to the $68.53 billion average estimate based on nine analysts. The reported number represents a change of +9.3% year over year.
Net Sales- Subscription services: $10.49 billion versus $10.40 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +14.1% change.
Geographic Revenue- North America: $105.51 billion compared to the $103.28 billion average estimate based on nine analysts. The reported number represents a change of +13% year over year.
Net Sales- Advertising services: $14.65 billion versus $14.07 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +26.8% change.
Geographic Revenue - International: $40.24 billion versus $38.36 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +16.8% change.
Net Sales- Third-party seller services: $43.56 billion compared to the $41.47 billion average estimate based on nine analysts. The reported number represents a change of +19.9% year over year.
Shares of Amazon have returned +4.5% over the past month versus the Zacks S&P 500 composite's +1.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Amazon (AMZN) Reports Q4 Earnings: What Key Metrics Have to Say
For the quarter ended December 2023, Amazon (AMZN - Free Report) reported revenue of $169.96 billion, up 13.9% over the same period last year. EPS came in at $1.01, compared to $0.21 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $166.26 billion, representing a surprise of +2.23%. The company delivered an EPS surprise of +24.69%, with the consensus EPS estimate being $0.81.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Amazon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Subscription services Y/Y Change: 13% versus 13.5% estimated by eight analysts on average.
- Online stores Y/Y Change: 8% compared to the 6.1% average estimate based on eight analysts.
- Third-party seller services Y/Y Change: 19% compared to the 14% average estimate based on eight analysts.
- Headcount - Total: 1,525,000 versus 1,514,658 estimated by two analysts on average.
- Net Sales- AWS: $24.20 billion versus the 13-analyst average estimate of $24.37 billion. The reported number represents a year-over-year change of +13.2%.
- Net sales- Physical stores: $5.15 billion versus the 11-analyst average estimate of $5.31 billion. The reported number represents a year-over-year change of +3.9%.
- Net sales- Online stores: $70.54 billion compared to the $68.53 billion average estimate based on nine analysts. The reported number represents a change of +9.3% year over year.
- Net Sales- Subscription services: $10.49 billion versus $10.40 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +14.1% change.
- Geographic Revenue- North America: $105.51 billion compared to the $103.28 billion average estimate based on nine analysts. The reported number represents a change of +13% year over year.
- Net Sales- Advertising services: $14.65 billion versus $14.07 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +26.8% change.
- Geographic Revenue - International: $40.24 billion versus $38.36 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +16.8% change.
- Net Sales- Third-party seller services: $43.56 billion compared to the $41.47 billion average estimate based on nine analysts. The reported number represents a change of +19.9% year over year.
View all Key Company Metrics for Amazon here>>>Shares of Amazon have returned +4.5% over the past month versus the Zacks S&P 500 composite's +1.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.