AMZN gave the following guidance for q4 2012:
Rev - 20.25 to 22.75 billion (wall street is expecting 22.28 billion)
Income between negative 480 million to position 310 million (I'm a bit surprised at the large range).
That equates to a loss of 1.06 per share to a profit of 0.68 per share.
The street expects a profit of 0.27 (good luck with that).
Note they lost 0.60 per share.
"AMZN is expected to beat both in revenues and earnings for Q4 2012."
Circle time story telling for the kidz with jeff.... He gets paid well to tell good storiez, az last quarter he pulled down a cool $200 mil in stok salez... Hiz storiez are the best "we lose money to gain market share. We wanna lose money at a faster rate by selling more stuff at a loss". Thats sybs favorite story.
Seeing how they missed eps estimates the last two quarters, i wouldn't be too surprised if they missed again. Here's a list why they will miss eps imo:
1) have you seen their esp result from the past year??? q4 2011 eps = 0.38, q1 2012 eps = 0.28, q2 eps = 0.01, and q3 2012 eps = -.6 (a loss of $0.60 per share)... do you notice a trend???
2) it has widely been reported that holiday sales have disappointed. Comscore reported yoy online sales growth of 14%... amzn is suppose to do 27%
3) sales tax was collected in ca, pa an tx (very large markets) and there are reports that sales have lagged other states.
4) the average rev per unit sold is trending down, while shipping costs are flat to up. this pressures margins.
5) they cut prices on aws (their cloud services) by 25%.
I don't see how they hit an eps of 0.27.
Even if they do, they will have negative earnings for the year!!!