AMAZON

[alingtonsky]

Amazon.com comunica utili del terzo trimestre in rialzo del 68% anno su anno e previsioni per il quarto trimestre 2009 superiori al consensus. L' azione sale di oltre il 14% in after hours


10/22/2009 6:06 PM ET
Free cash flow jumped 98% to $1.92 billion for the trailing twelve months, compared with $0.97 billion for the trailing twelve months ended September 30, 2008.

Earlier this week, Amazon.com started shipping its electronic reader, Kindle with U.S. & International Wireless, and lowered its price to $259 from $279. The company also introduced "Kindle for PC," the free application for reading Kindle books on the PC.

Kindle with U.S. & International Wireless enables readers to wirelessly download content in over 100 countries and territories. The U.S. Kindle Store now has more than 360,000 books, including 101 of 112 New York Times Bestsellers, more than 7,000 blogs, and more than 90 top U.S. and International newspapers and magazines.

During the quarter, Amazon.com launched "Local Express Delivery," a new shipping option giving customers same-day delivery on thousands of items in seven major cities in the U.S.

The company now offers free shipping on all products in the U.K., while it offers free same-day delivery service to its prime customers in Japan.

For the nine-month period of 2009, Amazon.com reported net income of $518 million or $1.18 per share, up from $420 million or $0.97 per share in the previous year period.

Net sales for the period increased to $15.00 billion from $12.46 billion in the prior year period.


Looking ahead, Amazon.com anticipates fourth quarter net sales in the range of $8.125 billion to $9.125 billion, representing a growth of 21% to 36% over last year. Analysts presently expect net sales of $8.11 billion for the fourth quarter.

Amazon's guidance excludes the impact of Zappos.com Inc., including about $35 million of expenses primarily related to employee compensation costs, amortization of intangibles and merger-related expenses that would be recognized in the fourth quarter 2009 if the transaction closes as planned.

Operating income is expected to be between $300 million and $425 million, representing a growth between 10% and 56% over a year ago. The company noted that the guidance includes about $100 million for stock-based compensation and amortization of intangible assets, and assumes that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates.

Amazon.com's rival eBay Inc. (EBAY: News ) reported that its third quarter profit declined 29% over last year, as the weaker U.S. dollar and weak performance in the Marketplaces business unit more than offset strong results in the Payments business unit, and Skype. The company also provided earnings outlook for the fourth quarter, in-line with current Street

Amazon.com Q3 Profit Jumps 68%, Tops Estimate; Sees Q4 Revenue Above Consensus; Shares Up

 

[alingtonsky]

Oct 23, 2009 05:10 PM

Internet retail giant Amazon (AMZN) reported blowout earnings yesterday, with strong numbers on its Kindle electronic book technology impressing many.

AMZN continues to be the dominant player in the "click-and-mortar" sales biz ... they seem to offer virtually every product in the world through their site and their various partners.

The big bump in the shares pushed AMZN to an all-time high (see the following chart). What is interesting here is that AMZN is now above even the levels of the "Internet Bubble". This shows that well-run, innovative companies will thrive no matter what the economic or market situation.


Personally I would say that for a long-term technology holding, I rate AMZN a "Buy".

AMZN Monthly Chart

Moby Waller,
BigTrends.com

Amazon (AMZN) breaks out to new all-time highs, long-term "Buy" rating - Moby Waller -- Seeking Alpha

 

[alingtonsky]

Oct. 23, 2009, 4:37 p.m. EDT
.....

"We recognize that the stock is far from cheap, but believe that it deserves to trade at a premium given its earnings growth, the possibility that earnings could further accelerate, and the fact that it's taking significant share," Dan Geiman of McAdams Wright Ragen wrote in a report.
Geiman upgraded the stock to a buy rating and raised his price target from $81 to $130 -- which is 53 times his estimated earnings for the company in 2010.
....
Growing its other businesses

While Amazon is often compared to other retailers, the company also has a growing business in digital media, selling music, movies and video games for download. In addition, the company says its Kindle e-book reader is now the most popular product on its site, for which it sells electronic versions of books, newspapers and magazines.
Also, the company has a small but growing Web services business, which provides outsourced computing and data storage for businesses.
Imran Khan of J.P. Morgan & Chase boosted his own price target from $108 to $150, which is currently the highest on Wall Street for Amazon. In a note to clients, he cited Amazon's strong gain in free cash flow -- which jumped 98% to $1.9 billion in the third quarter -- and his belief that the company will continue to take share of the growing e-commerce market.

"Given the rapid revenue growth and superior industry position, we believe the stock has capacity to see further multiple expansion," he wrote.
Khan noted that Amazon trades at about 17.1 times his fiscal 2010 estimates for pre-tax earnings, compared to an average multiple of 11.3 in the e-commerce group and 11.7 for large-cap Internet companies.

Sentiment still closely divided

Even with Friday's upgrades, sentiment is still closely divided on Amazon. Seventeen brokers now rate the shares as a buy, while 16 remain neutral and two retain sell calls, according to data from Thomson Reuters.
Ben Schachter of Broadpoint AmTech noted that the company will face more competitive pressures in the fourth quarter as other retailers slash prices for the holidays, which is likely to pressure the company's margins, he said.
Schachter raised his price target to $105 from $96, but remained neutral on the stock "based on valuation and continued uncertainty about the slope of Amazon's long-term margin curve," he wrote.
Colin Gillis of Brigantine Advisors is one of the few analysts who is bearish on the stock. He lifted his price target to $90 from $83 but kept his sell rating, noting worries about competition.
"As a discounter, Amazon is pressured to provide low prices -- hurting its ability to deliver margin expansion," Gillis wrote. "We note that the Wal-mart CEO recently commented 'If there is going to be a 'Wal-Mart of the Web' it is going to be walmart.com.'"

Are Amazon's shares too expensive now? - MarketWatch

 

[alingtonsky]

26 Gennaio, 2010

Oppenheimer crede che la prossima trimestrale di Amazon (US0231351067) sarà un catalizzatore per il titolo. Secondo il broker la crescita delle vendite del leader mondiale del commercio elettronico avrebbe registrato lo scorso trimestre un'accelerazione più forte del previsto. Amazon avrebbe inoltre migliorato il controllo dei suoi costi. Oppenheimer ha alzato perciò le sue stime sull'utile per azione di Amazon per il quarto trimestre 2009 da $0,67 a $0,85 ed il target price per il titolo da $130 a $160. ...
Amazon pubblica i suoi dati di bilancio giovedì prossimo. Gli analisti si attendono in media un utile di $0,72 per azione.

Amazon: Oppenheimer consiglia l'acquisto del titolo prima della trimestrale - Borsa, Finanza, Investimenti

8:36 AM EST

...

1. Shares Off Recent Highs. Since Dec. 2, 2009, shares of Amazon.com are down about 15% versus a decline of 1% in the S&P 500 and 6% in Opco Hardlines Index and now trade modestly lower than the price to which AMZN rallied in the days following the company’s better than expected Q3 report in late Oct.

Firm illustrate in Exhibit below that since AMZN’s Q3 report, shares are up only 2%, in line with the S&P 500. This is largely consistent with the movement in shares ahead of prior quarterly EPS reports for the company.


...
3. Valuation Still Subdued. Oppenheimer continues to look upon the valuation at which AMZN trades as favorable. AMZN shares typically maintain a multiple of greater than 40x NTM P/E estimates in periods where sales growth exceeds or is expected to top 20%. They expect AMZN to maintain this growth level through at least FY11. Ahead of the company’s Q4 report that shares trade at a multiple that is about consistent with valuation levels prior to the company’s earlier quarterly earnings reports.

...

http://www.streetinsider.com/Analys...uy+the+Stock+Ahead+of+Q4+Results/5274463.html

 

[alingtonsky]

AMZN in rialzo in a.h. dopo i risultati trimestrali


January 28, 2010, 4:52 PM ET

Even with estimates rising headed into the announcement, Amazon.com (AMZN) still posted better-than-expected Q4 results, and the stock is moving higher in late trading.
The online retailer reported revenue of $9.52 billion, up 42% from a year ago, and ahead of the Street at $9.04 billion. EPS of 85 cents a share was well ahead of the Street at 72 cents. Gross margin was 20.76%, up from 20.1% a year ago. Operating margin jumped to 5%, from 4% a year ago. Operating income was $476 million, up 75% year-over-year.
For the first quarter, the company sees revenue of $6.4 billion to $7 billion, above the Street at $6.36 billion, with operating income of $275 million to $365 million.
Amazon also announced plans to buy back up to $2 billion of its common stock. The company finished the quarter with $6.4 billion in cash and short-term securities.


Amazon Q4 Tops Street Ests; Sets $2B Buyback; Stock Rises - Tech Trader Daily - Barrons.com


http://www.internetnews.com/bus-news/article.php/3861476

 

[alingtonsky]

January 29, 2010 7:11 AM EST

Kaufman Bros. reiterates a 'Buy' rating on Amazon.com (NASDAQ: AMZN), raises price target from $155 to $160.

Kaufman analyst says, "Momentum continues with revenues up approximately 34% Y/Y on an organic FX neutral basis vs. 29% in 3Q...PF operating income increased 66% Y/Y with PF operating margins of 6.3% vs. our 5.8% estimate...Strong domestic gross margins driven by continued scale efficiencies, third-party sales, and other revs. (i.e., web services)...We are modestly increasing our revenue and PF EPS estimates due to the strong revenues and improved margin outlook. For 1Q10, we move from $6.654B in revenues and $0.81 in PF EPS to $6.946B and $0.85. For 2010/ 2011 estimates, we move from $31.8B/$39.3B in revenue and $3.71/$4.82 in PF EPS to $32.2B/$39.3B and $3.85/$5.02, respectively."

...

StreetInsider.com - Kaufman Bros. Reiterates a 'Buy' on Amazon.com (AMZN); Raises PT & Estimates

 

[alingtonsky]

February 1, 2010 12:42 PM EST

Standpoint Research upgraded Amazon.com (Nasdaq: amzn) from Sell to Under-Perform leavingprice target unchanged at $105.

"The reason for the rating change is that the shares are down by more than $30 in two months and went from more than 40X 2011 estimates to less than 30X 2011 estimates during that time frame
... the shares remain expensive based on 2010 estimates at more than 40X estimates, down from more than 60X two months ago."


StreetInsider.com - Standpoint Research Upgraded Amazon.com (AMZN) to Under-Perform


Feb 1 (Reuters) - A pricing battle lost by Amazon.com Inc (AMZN ) to a top publisher may herald pressure from other publishers, compromising low e-book prices which could potentially hit sales volume growth for its Kindle e-reader.
The news highlighted for the first time that the world's largest online retailer, and its market-leading Kindle, could soon be challenged by new rival Apple Inc (AAPL.O) in the mass transition to digital books.
Amazon's shares fell as much as 9 percent in the regular session before closing down 5.21 percent. It fell another 2.4 percent to $115.98 after hours.
"The thought is: Will other publishers now want to re-price their offerings on Amazon.com, which could affect their entire business model," said TD Ameritrade chief derivatives strategist Joe Kinahan.
The advent of Apple's highly touted iPad into the burgeoning digital book market has already set off a chain reaction, with publishers anxious to protect their profit margins against Amazon's desire for low prices.
On Sunday, Amazon alerted customers that it had bowed to pressure from publisher Macmillan, which insisted on charging $12.99 to $14.99 for its books sold at the Kindle e-reader bookstore rather than Amazon's standard $9.99. [ID:nN31156514]
The pricing reflects terms agreed upon by five of the six top publishers for selling e-books on Apple newly unveiled iPad multimedia tablet, the New York Times reported.
Amazon has long touted low prices and selection as its primary appeal to consumers, who helped push Amazon's revenue up 42 percent in its most recent fourth quarter.
Book pricing has been key to pushing growth of the Kindle since its launch in 2007, but has also put Amazon at odds with publishers. Major publishing houses have complained that low prices on digital versions of its titles will cannibalize sales of higher-priced hardback copies.
Amazon's dominance in e-books gave it the clout to demand lower prices; that is, until Apple emerged on the scene with the iPad and an iBookstore last week.
BGC Partners analyst Colin Gillis called the concession to Macmillan "just the first repercussion to Amazon's Kindle and e-book franchise from the recently announced Apple product."
For its part, Amazon may have set itself up for disappointment by touting the Kindle's success, without providing supporting data. Last month, Forrester analyst James McQuivey told Reuters the stock could fall as much as 20 percent at the hint of Kindle's weakness. [ID:nN31248748]
On Monday, market watchers were surprised at Amazon's steep descent.
"The stock has technically broken down and it's just a matter of sellers piling up on sellers," said Michael James, senior trader at Wedbush Morgan in Los Angeles.
Meanwhile, shares of Amazon rival Barnes & Noble, the bookseller whose Nook e-reader hit the market just before Christmas, rose 17 percent in after-hours trade on Monday after investor Ronald Burkle sought to raise his stake.

SELL-OFF OVERDONE?
Amazon does not disclose sales or profit data about the Kindle, only saying that millions of people have bought the device.
Some analysts believe Amazon sells the $9.99 titles at a loss, and recoups that through sales of its readers. That means that the higher sale price demanded by Macmillan will boost Amazon's e-book profit margin, noted at least two analysts who believe the sell-off in shares appeared overdone.
"Though Kindle revenue growth could be negatively impacted, higher prices would improve profitability," wrote UBS analyst Brian Pitz, adding that Amazon's "significant" pricing leverage should not be underestimated.
"The iPad is still untested as a reading device and we believe there is room in the market for dedicated eReaders," he said, reiterating a constant refrain from Amazon that Kindle customers are for dedicated, rather than casual, readers.
J.P. Morgan's Imran Khan, meanwhile, wrote that if prices on e-books were to rise to $14.99 from $9.99, volume would have to fall by more than a third in order for revenue to decline.
"We don't expect a material EPS impact," he wrote.

UPDATE 3-Amazon loss on e-book pricing could fuel trend | Reuters

 

[alingtonsky]

February 8, 2010, 9:19 AM ET

• Collins Stewart analyst Sandeep Aggarwal t

• his morning lifted his rating on Amazon.com (AMZN) to Buy from Hold, setting a price target of $150. The stock closed Friday at $117.39.

“In addition to AMZN presenting an attractive entry point after being down 15% from its recent peak, we believe that, though higher competitive risk remains a concern for the Kindle franchise, the Kindle ecosystem is much bigger than what we and [the] Street previously thought,” he writes in a research note. “In our view, the strength of [the] core biz combined with multi-billion opportunities with Kindle and AWS [Amazon Web Services] create more significant growth opportunities for AMZN that the Street is currently estimating.”
The analyst expects 2010 Kindle shipments of 3.85 million units, generating in $2.5 billion in Kindle-related revenue and an estimated $620 million in gross profit. He also contends that AWS can generate more than $300 million in revenue in 2010, with margins “much higher” than Amazon’s core business.
Aggarwal lifted his 2010 GAAP EPS estimate to $2.91, from $2.79; for 2010 he goes to $3.98, from $3.77.


Amazon: Collins Stewart Upgrades To Buy; Sets $150 Target - Tech Trader Daily - Barrons.com

 

[alingtonsky]

4/8/2010 2:30 PM
Solid retail sales data and hopes that the Kindle may expand its market presence have lifted Amazon.com, Inc. (AMZN) shares today. As a result, the online retailer has seen an influx in optimistic option activity, with traders scooping up front-month calls on the stock
...

Technically speaking, since grazing the $45 region in early 2009, the shares of AMZN have been on fire, more than tripling along the support of their 10-week and 32-week moving averages. However, the stock is now at a psychologically critical junction on the charts. The $140-$145 neighborhood contained AMZN's rally attempts in late 2009 and early 2010, and could once again act as a technical speed bump for the equity.

Front-Month Traders Target Amazon.com, Inc. as Stock Nears Technical Crossroads
​

 

[alingtonsky]

Fri Oct 22, 2010 7:12am EDT
....
Amazon is adding fulfillment centers around the world and spending on technology to support its retail and Web services businesses -- costs that will spill over in the fourth quarter, the company said on Thursday.

"In our view, this is the right decision for the long run, given Amazon's attractive prospects and its high return on invested capital, notwithstanding the near-term impact on margins," Credit Suisse analyst Spencer Wang wrote in a note.
"Ultimately, we believe value creation is driven by increasing profit dollars as opposed to profit margins."
Part of Amazon's long-term strategy is to rival competitors like Wal-Mart Stores Inc (WMT) on price, as well as to give shoppers perks like free shipping and returns. This makes it popular with shoppers as they make repeat purchases, but cuts into profit margins.
"The key thing to note is (that) Amazon's phenomenal revenue growth requires investment, whether it is in fulfillment centers, servers and storage, Kindle marketing or spending on new digital media initiatives," said Kaufman Brothers analyst Mayuresh Masurekar.
"Investors can expect either phenomenal revenue growth or operating margin expansion, but probably not both at the same time."
Both Credit Suisse and Kaufman have a neutral view on the stock.
Susquehanna also raised its Amazon price target, while having a neutral rating on the stock. Jefferies, which has a 'buy' rating, raised its Amazon target price to $185 from $140.

- UPDATE 1-Analysts look beyond Amazon margin hit, raise targets | Reuters


09:02 AM ET




Oct 22, 2010 (SmarTrend News Watch via COMTEX) -- Citigroup Inc. (C) adjusted estimates and reiterated a Buy rating for Amazon.com, Inc. (AMZN) Friday, following the online retailer's above consensus Q3 earnings results.

"Revenue of $7.56B was ahead of the Street/CIRA [at] $7.35B/$7.29B, while proforma operating income of $401MM was in-line with the Street/CIRA [at] $399MM/$396MM," wrote Citigroup's Mark S. Mahaney in a research note. "GAAP EPS of $0.51 was ahead of the Street/CIRA [at] $0.48/$0.44, due to 1Xish items. Q4 Midpoint [Revenue] Guide of $12.65B was above the Street at $12.34B, while Q4 Midpoint Operating Inc Guide of $600MM (4.7% margin) was below the Street at $681MM (5.5% margin).
''11 GAAP EPS slips from $3.76 to $3.67 while PT remains at $190 -- 30X '12 Non-GAAP EPS of $6.41 or 20X '12 FCF," Mahaney continued. "AMZN's Investment plans are heavy, but they remain from a position of strength. Near-term margin trends due to elective investments, not structural issues. AMZN is aggressively attacking its Double-Double Opportunity. We would be buyers here ($159) and aggressive buyers on a material pullback."
Amazon.com is currently above its 50-day moving average (MA) of $144.76 ..

In the last five trading sessions, the 50-day MA has climbed 2.4% ..

The company has reported $28.7 billion in sales over the past 12 months and is expected to report $41.5 billion in sales in the next fiscal year.

Citigroup Inc. Reiterates Buy, Adjusts Estimates for Amazon.com, Inc. Following Above Consensus Q3 Earnings (C,AMZN) - Investors.com



Bing Translator

http://it.babelfish.yahoo.com