Amazon.com declines after e-commerce giant issues disappointing 1Q guidance

Amazon.com Inc (NASDAQ:AMZN) fell Friday a day after the e-commerce giant reported disappointing guidance that overshadowed strong quarterly results.

Net sales are expected to be between $56 billion and $60 billion in the first quarter, or to grow between 10% and 18% compared with a year earlier. The company said it’s expecting an unfavorable impact of about 2.10 percentage points from foreign-exchange rates.

Shares fell 4.3% in Friday’s premarking trading. 

READ: Amazon takes over from Microsoft as world’s most valuable listed company

Wall Street analysts were forecasting $61 billion in first-quarter net sales.

The company reported fourth-quarter earnings of $6.04 per share on revenue of $72.4 billion, beating street estimates of $5.67 per share on $71.61 billion in revenue.

The fourth-quarter is generally the largest for Amazon because it includes the holiday shopping season.

Operating income is expected to be between $2.3 billion and $3.3 billion in the first quarter, compared with the year-ago period’s $1.9 billion. 

Amazon shares are trading about 18% below their August 2018 high of $2,050.

Contact Katie Lewis at [email protected]

Story by ProactiveInvestors