Analyst: Raising Estimates for Amazon
Amazon.com (NASDAQ:AMZN) signed up millions of new Prime members during the quarter. The combination of growing Prime membership, increasing convenience, increased selection, competitive pricing and the potential for same-day delivery should increase basket size, and in turn, should allow Amazon’s product sales to grow dramatically going forward.
Q3 revenue was slightly upbeat from higher-than-expected international revenues and EPS missed slightly from lower gross margins and higher operating expenses. Revenue was $17.1 billion, compared with our estimate of $16.8 billion and the consensus estimate of $16.8 billion. GAAP EPS was $(0.09), compared with our estimate of $(0.08), and the consensus estimate of $(0.09). Operating Income came in at $(25) million. The company provided Q4:13 guidance for net sales of $23.5 – 26.5 billion and an operating income of $(500) – 500 million.
During the quarter, Amazon brought 8 million square feet of fulfillment center capacity online and deployed 1,382 Kiva robots in three FCs. We are excited to see how margins are impacted as the Kiva rollout continues.