Amazon’s Mixed Q4 2014 With $29.33B Revenue, And $0.45 EPS

Amazon just released its fiscal Q4 2014 earnings, reporting $29.33 billion in revenue, $214 million in net profit representing $0.45 per share. According to CNBC/Thomson Reuters, analysts expected the company to report earnings of $0.17 per share on $29.67 billion in revenue.

For the past two quarters, Amazon unexpectedly posted losses. Three months ago, the stock market was very harsh with the company, pushing the stock down 10 percent.

Last year, Amazon reported $25.59 billion in revenue, and earnings per share of $0.51.

But this quarter is supposed to be different. Amazon is still recovering from the release of the Amazon Fire Phone. After realizing that very few people were buying the company’s new phone, Amazon had no choice but to lower the price. You can find it for $0.99 every now and then.

As a result, Amazon’s margins are suffering. But things are starting to look better. First, the revenue is still greatly increasing. While the company is investing heavily in research and development for new devices, Amazon is still first and foremost an incredibly successful ecommerce website.

In particular, Amazon Prime is doing really well. Tens of millions of people around the world subscribe to Prime to get faster delivery and streaming services. The company can probably generate healthy margins on this subscription.

Other high margin areas include advertising on Amazon’s properties, the Amazon Appstore for Android, Amazon Instant Video and the Kindle Store.

from TechCrunch http://feedproxy.google.com/~r/Techcrunch/~3/1ayIvCLkoWY/

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