Amazon's Q4 net sales up but forecasts dip in Q1 profit

Amazon.com said in a statement that its net sales increased 22 percent to 43.7 billion dollars in the fourth quarter. Excluding the 558 million dollars favorable impact from year-over-year changes in foreign exchange rates, net sales increased 24 percent. However, for the first quarter ahead, Amazon expects operating income to be between 250 million dollars and 900 million dollars, compared with 1.1 billion dollars in first quarter 2016.

“Our prime team’s customer obsession kept them busy in 2016,” said Jeff Bezos, Amazon Founder and CEO in a press release, adding, “Prime members can now choose from over 50 million items with free two-day shipping — up 73 percent since 2015.”

Q4 and FY16 net income increases

Operating income for the quarter increased 13 percent to 1.3 billion dollars compared with operating income of 1.1 billion dollars in fourth quarter 2015. Net income was 749 million dollars or 1.54 dollars per diluted share, compared with net income of 482 million dollars or 1 dollar per diluted share, in fourth quarter 2015.

Net sales increased 27 percent to 136 billion dollars in FY16. Excluding the 550 million dollars unfavorable impact, net sales increased 28 percent compared with 2015.

Operating income for the whole year was 4.2 billion dollars, compared with operating income of 2.2 billion dollars in 2015. Net income was 2.4 billion dollars or 4.90 dollars per diluted share, compared with net income of 596 million dollars or 1.25 dollars per diluted share, in 2015.

For the first quarter of FY17, net sales are expected to be between 33.25 billion dollars and 35.75 billion dollars, or to grow between 14 percent and 23 percent compared with first quarter 2016. This guidance anticipates an unfavorable impact of approximately 730 million dollars or 250 basis points from foreign exchange rates.

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