Amazon reports Q4 (Dec) results, revs in-line; guides Q1 revs below consensus; AWS sees nice growth; co to raise Prime subscription fees (2776.91 -235.34)
- Reports Q4 (Dec) earnings of $27.75 per share, this is NOT comparable to the S&P Capital IQ Consensus of $3.54; revenues rose 9.4% year/year to $137.41 bln vs the $137.63 bln S&P Capital IQ Consensus.
- Note: the EPS number includes a pre-tax valuation gain of $11.8 bln related to its investment in Rivian Automotive (RIVN), which completed its IPO in November. We are not seeing a clean adjusted EPS number.
- Operating income fell 50% yr/yr to $3.46 bln, above prior guidance of $0-3 bln.
- AWS segment sales rose 39.5% yr/yr to $17.78 bln, a modest acceleration from 39% growth in Q3, +37% growth in Q2 , +32% in Q1 and +28% in 4Q20.
- Co will increase the price of a Prime membership in the US, with the monthly fee going from $12.99 to $14.99, and the annual membership from $119 to $139. This is its first price increase since 2018. Note: NY Post reported this week, this may happen.
- "As expected over the holidays, we saw higher costs driven by labor supply shortages and inflationary pressures, and these issues persisted into [Q1] due to Omicron."
- Co issues downside guidance for Q1, sees Q1 revs of $112-117 bln vs. $120.52 bln S&P Capital IQ Consensus.
- Co guides to Q1 operating income of $3-6 bln, which is below consensus of $6.35 bln.