Amazon Announces Earnings Results for the Fourth Quarter and Full Year of 2015; Provides Earnings Guidance for the First Quarter Ending March 2016
January 28, 2016 at 04:43 pm
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Amazon announced earnings results for the fourth quarter and full year of 2015. For fourth quarter, the company's net income more than doubled to $482 million, or $1 per share, from $214 million, or 45 cents per share last year. Amazon's revenue rose 22% to $35.75 billion from $29.33 billion last year.
For the year, the company's revenue increased 20% to $107 billion or 26% excluding year-over-year changes in foreign exchange. GAAP operating income was $2.2 billion compared with $178 million in the prior year. Trailing 12-month operating cash flow increased 74% to $11.9 billion. Trailing 12-month free cash flow increased to $7.3 billion, up from $1.9 billion. Trailing 12-month free cash flow less lease principal repayments increased to $4.7 billion, up from $529 million. Trailing 12-month free cash flow less finance lease principal repayments and assets acquired under capital leases increased to $2.5 billion, up from an outflow of $2.2 billion. Trailing 12-month capital expenditures were $4.6 billion.
For the first quarter ending March 2016, the company said it expects net sales in the range of $26.5 billion to $29 billion or growth of between 17% and 28%. This guidance anticipates approximately 130 basis points of unfavorable impact from foreign exchange rates. GAAP operating income to be between $100 million and $700 million compared with $255 million in first quarter 2015. This includes approximately $600 million for stock-based compensation and other operating expenses net. The company anticipates consolidated segment operating income, which excludes stock-based compensation and other operating expense net to be between $700 million and $1.3 billion compared with $706 million in the first quarter of 2015.
Amazon.com, Inc. is one of the world leaders in on-line distribution of products to the general public. The group also operates a marketplace activity, allowing individuals and distribution companies to conduct their purchase and selling transactions for goods and services. The activity is organized around three families of products and services:
- electronic and computer products: toys, cameras, computers, laptops and peripherals, TVs, stereo systems, readers, wireless communication products, etc. Amazon.com also offers kitchen and garden equipment, clothing, beauty products, etc.;
- cultural products: books, musical products, video games and DVDs;
- other: primarily Internet interface and application development services.
Net sales break down by source of income between sales of services (55.5%) and sales of products (44.5%).
Net sales are distributed geographically as follows: the United States (68.8%), Germany (6.5%), the United Kingdom (5.9%), Japan (4.5%), and other (14.3%).