[ACCESSWIRE]
Upcoming AWS Coverage on Vipshop Holdings Post-Earnings Results
LONDON, UK / ACCESSWIRE / February 16, 2017 / Active Wall St. announces its post-earnings coverage on Amazon.com, Inc. (NASDAQ: AMZN). The Company announced its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on February 02, 2017. The Seattle, Washington-based diluted EPS grew on a year-over-year basis; beating Wall Street's consensus estimates. Additionally, the ecommerce giant reported profit for the seventh consecutive quarter. Register with us now for your free membership at:
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One of Amazon.com's competitors within the Catalog & Mail Order Houses space, Vipshop Holdings Ltd. (NYSE: VIPS), is estimated to report earnings on February 22, 2017. AWS will be initiating a research report on Vipshop Holdings following the release of its next earnings results.
Today, AWS is promoting its earnings coverage on AMZN; touching on VIPS. Get our free coverage by signing up to:
http://www.activewallst.com/register/
Earnings Reviewed
In Q4 FY16, Amazon reported total net sales of $43.74 billion, which was 22% higher than $35.75 billion recorded at the end of Q4 FY15. However, total net sales numbers for the reported quarter fell short of market expectations of $44.87 billion. Excluding foreign exchange rates translation headwinds amounting to $558 million, net sales increased 24% y-o-y in Q4 FY16. The Company's net product sales rose to $30.63 billion in Q4 FY16 from $26.62 billion in Q4 FY15. Furthermore, net service sales during the reported quarter were $13.11 billion compared to $9.13 billion in the prior year's same quarter.
For Q4 FY16, the Company posted operating income of $1.26 billion compared to $1.11 billion in the prior year's comparable quarter. Moreover, operating margin, as a percentage of World Wide net sales stood at 2.9% in Q4 FY16 compared to 3.1% of World Wide net sales in Q4 FY15. The online retailer reported Q4 FY16 net income of $749 million, or $1.54 per diluted share, compared to $482 million, or $1.00 per diluted share, in Q4 FY15. The Company's net income per share beat market estimates of $1.40 per diluted share.
Amazon's full year FY16 total net sales were up by 27% y-o-y to $135.99 billion from $107.01 billion in FY15. Excluding foreign exchange rates headwinds of $550 million; net sales increased 28% y-o-y in FY16. The Company's reported net income of $2.37 billion, or $4.90 per diluted share in FY16, versus $596 million, or $1.25 per diluted share, in the FY15.
Segment Performance
During Q4 FY16, North American net sales were $26.24 billion, up 22% y-o-y from $21.50 billion reported in the last year's comparable period. The segment contribution to the Company's total net sales was 60% in Q4 FY16. Furthermore, the segment's operating profit rose during Q4 FY16 to $816 million from $636 million in the prior year's same quarter.
Amazon's International segment generated 32% of the Company's total net sales amounting to $13.97 billion in Q4 FY16 versus 33% of the Company's total net sales amounting to $11.84 billion in prior year's comparable quarter. The segment's operating loss widened to $487 million in Q4 FY16 from $108 million in Q4 FY15.
Amazon Web Services (AWS) segment's net sales rose 47% y-o-y to $3.54 billion in Q4 FY16. Furthermore, the segment reported operating profit of $926 million in Q4 FY16, which came in above $580 million reported in the previous year's same quarter.
Cash Flow & Balance Sheet
Amazon's net cash provided by operating activities during the year ended December 31, 2016, came in at $16.44 billion, gaining 38% y-o-y from $11.92 billion in FY15. Free cash flow in the trailing twelve months increased to $9.71 billion for the year ended December 31, 2016, from $7.33 billion in trailing twelve months of the year ended December 31, 2015. The Company had cash and cash equivalents balance of $19.33 billion as on December 31, 2016, compared to $15.89 billion, at the close of books on December 31, 2015. Furthermore, the Company's long-term debt balance as on December 31, 2016, stood at $7.69 billion, compared to $8.23 billion as December 31, 2016.
Outlook
In its guidance for Q1 FY17, Amazon's management expects net sales to be between $33.25 billion and $35.75 billion, or to grow in the range of 14% and 23% y-o-y. The Company's also anticipates a $730 million, or 250 basis points, headwinds foreign exchange translation rates. The Company forecasts operating income for Q1 FY17 to be in the range of $250 million and $900 million.
Stock Performance
At the closing bell, on Wednesday, February 15, 2017, Amazon.com's stock marginally climbed 0.75%, ending the trading session at $842.70. A total volume of 2.96 million shares were traded at the end of the day. Amazon.com's stock price advanced 4.07% in the last month, 17.19% in the past three months, and 10.30% in the previous six months. Moreover, the stock surged 12.38% since the start of the year.
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SOURCE: Active Wall Street
