CNBC “Closing Bell” Interview: AMZN 4Q14 Results Reaction
Updated: Apr 23, 2021
CNBC “Closing Bell” Interview: AMZN 4Q14 Results Reaction – Revs Miss Expectations, EPS Surprise on Peak Seasonal Quarterly Results – With Exposure To Weak Int’l Markets, Lighten Up on Post-EPS Stock Price Spike.
AMZN EPS Surprise Masks 4Q14 Revenue Miss: The year-end 4Q14 results for AMZN (revs $29.3bn (+15% y/y), Operating Income $591mm (+16% y/y), EPS $0.45 (-12% y/y)), while marking a continued deceleration in revenue growth (3Q14 +20% y/y, 2Q14 +23% y/y, 1Q14 +23% y/y), a fall in trailing twelve-month free cash flow ($1.95bn, -4% y/y) and an EPS decline from 4Q13, represented a surprise against low Street expectations and consequently the share price is up sharply after hours to $351.77 (+$39.99, +13% vs. the $311.78 close). As the results do not to us indicate the beginning of a sustained turn for the better in AMZN profit margins and the company faces weaker economic conditions in significant international markets (e.g. EU), we are inclined to use the post-EPS stock price spike as a selling opportunity. We’ve seen what AMZN could do in its seasonally strongest period, so time to take profits and go home.