Amazon beats Q4 expectations, forecasts slower Q1 growth

E-commerce and technology giant Amazon reported better than expected earnings and revenue for the fourth quarter, but the company’s officials predicted slower growth in the coming period.

The Seattle-based company’s revenue guidance for net sales in the first quarter is between $ 151 billion and $ 155.5 billion, lower than the $ 158.56 billion that analysts expected.

The guide expects an unfavorable influence from exchange rates, CFO Brian Olsavsky said.

“We estimate the impact of the year-over-year’s effect of changes in exchange rates based on current rates, which we expect to be a headwind of approx. 2.1 billion Dollars in 1st quarter analysts after the market closed Thursday. “Global currencies can fluctuate during the quarter, just as we saw in the 4th quarter of strengthening the dollar versus most other currencies.”

Amazon’s operating income in the first quarter is expected to be between $ 14 billion and $ 18 billion.

Amazon (Nasdaq: Amzn) made revenue from the fourth quarter of $ 187.8 billion, a 10.4% increase the year before compared to the same period in 2023.

The company reported the adjusted earnings per Share of $ 1.86 for the period, an increase of 86% over the year from the fourth quarter of 2023.

Amazon beat Wall Street expectations for revenue from the fourth quarter of $ 187.3 billion and adjusted earnings per year. Share of $ 1.49.

For his online shopping company, Amazon reported quarterly turnover of $ 75.5 billion, an increase of 7% years over the year from the same period in 2023.

“Customers still want Amazon to be the place they depend on at sharp pricing,” said CEO Andy Jassy during the analyst call. “Our delivery speed continues to accelerate in 2024, which was another record year for prime members.”

Operating income rose 60.6% years over year to $ 21.2 billion, while net income rose to 88.6% years over year to $ 20 billion in the third quarter.

The company’s North American sales rose 10% years over year to $ 115.6 billion, while its international sales rose 9% years over year to $ 43.4 billion.

Amazon expanded the number of delivery locations the same day by more than 60% in 2024 and now serves more than 140 metro areas, according to Jassy.

“We delivered over 9 billion units the same or the next day around the world,” he said. “We have also spent considerable time optimizing the number of items we send customers in the same package that reduces the packaging is more convenient for customers and cheaper for us to fulfill.”

Jassy said Amazon also finds ways to optimize his delivery systems.

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