Amazon delivered a strong set of financial results in the fourth quarter, with revenue in the holiday span rising 10% from a year ago to $187.8 billion and earnings nearly doubling to $1.86.
Shares in the tech giant slumped on the earnings news, however, as it contained worse-than-expected guidance for the first quarter. After closing the regular trading day at $238.83, up 1%, shares fell 2% in after-hours trading.
Analysts had expected earnings per share of $1.49, up from $1 in the year-ago period. Revenue was pegged at $187.3 billion, compared with $170 billion in the 2023 frame.
In the current, first quarter, the company projects sales to grow by 5% to 9% over year-ago levels, to $151 billion to $155.5 billion. The earnings release said the guidance “anticipates an unusually large, unfavorable impact of approximately $2.1 billion” from foreign exchange rates. The January-to-March quarter also does not include the extra day in February due to Leap Year, which will mean a $1.5 billion hit.
“The holiday shopping season was the most successful yet for Amazon and we appreciate the support of our customers, selling partners, and employees who helped make it so,” CEO Andy Jassy said in the earnings release. “When we look back on this quarter several years from now, I suspect what we’ll most remember is the remarkable innovation delivered across all of our businesses.”
Along with the usual retail bonanza, the holiday quarter has become a bigger advertising opportunity for Prime Video due to the streaming outlet’s long-term deal with the NFL. The tech giant and the league have carved out Black Friday as a new day of football, with positive results thus far.
Advertising climbed 18% in the quarter, reaching $17.3 billion.
Amazon Studios also contributed to the holiday performance, with its Christmas-themed original movie Red One, starring Dwayne Johnson, getting a major companywide push. It was a disappointment during its 28-day theatrical run, collecting $185.7 million in worldwide box office with a production and marketing budget well north of that level. As a streaming title, though, it attracted a company-record 50 million viewers in its first four days of release in December. The vast majority of those views came in homes that get served ads.
