Amazon's Got It Going On
Welcome to the "I told you so" era in the Amazon.com (Nasdaq: AMZN) timeline. Coming through with spectacular results for the quarter that ended in March, the leading online retailer laid to rest the notions that e-commerce of hard goods can't be profitable, that a retailer is tethered to holiday seasonality, and that a behemoth can't accelerate its top-line growth.
Net sales soared 32% higher for the period to top the $3 billion mark. Earnings per share more than doubled to $0.26 a share. Clueless analysts had been expecting the company to earn just $0.15 a share on $2.9 billion in net sales. Here's how things have stacked up recently for the company.
Quarter | Sales Growth (YOY) |
|---|---|
Q1 2006 | 20% |
Q2 2006 | 22% |
Q3 2006 | 24% |
Q4 2006 | 34% |
Q1 2007 | 32% |
Yes, there's a slight drop this time around. After accelerating sales sequentially throughout 2006, Amazon may feel mortal. However, 32% is far better than the 20% top-line spurt it recorded a year earlier. Even if you factor in currency-exchange gains, Amazon still smoked last year's showing.
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