Home » Internet News » INSTANT VIEW: AMAZON TROUNCES STREET TARGETS, SHARES SOAR

(Reuters) – Amazon.com Inc reported quarterly gain that kick Wall Street’s many bullish expectations after a world’s largest Internet tradesman brought costs underneath control, promulgation a shares roughly 10 percent higher.

COMMENTARY:

RONALD JOSEY, ANALYST, THINKEQUITY

“What jumped out to me was a sum profit, expansion as great as their altogether operating income margins of 3 percent relations to where expectations were. Net, net is: a most improved topline than you were awaiting as great as a much, most improved bottomline.

“The association is positively behaving incredibly well. Coming out of (the fourth quarter), there were concerns around a media business, utterly North America.

“This seventeen percent expansion you saw this entertain during slightest allays a small of a fears that a passing from a single to another from earthy to digital is slowing. The seventeen percent expansion in media was a clever series relations to expectations.”

JORDAN ROHAN, ANALYST, STIFEL NICOLAUS & CO

“This looks identical to a entertain that has something for everyone, expansion as great as margins to prove investors. This was a undiluted balance. It looks to me there was a follow-through for a Kindle as great as Kindle Fire in a re-acceleration of expansion in media.

“The device plan appears to be working…, pushing a single more downloads of Kindle books. The alternative thing that is notable: a association obviously knew it had a great entertain upon a hands, a repurchase of $ 960 million value of stock… that was a lot.”

MARK HARDING, ANALYST, JMP SECURITIES

“Looking during a revenue, it exceeded expectations opposite a board. Gross margins were essentially up upon a year over year as great as consecutive basis. Fulfillment costs did enlarge marginally – positively reduction than you were expecting.

“For a quarter, you consider they did really well. This was flattering most broad-based opposite a opposite segments. you would contend a the single area of downside that was a small bit weaker was a wiring as great as ubiquitous merchandise. Really, a outperformance upon a tip line was flattering most extended based.

“Revenue superintendence was incompletely weak. At a mid-point $ 12.6 billion that is a small diseased though you do not consider it’s that material. The handling income side is a small bit weaker.”

SCOTT TILGHMAN, ANALYST, CARIS & COMPANY:

“This is a second entertain in a quarrel where you have seen that a sum margins have trended improved than expected.

It looks identical to a large pitch cause (for a beat) was one, a sum margins came in improved than expected, as great as two, a buying price was most reduce than expected.

“The a single thing that you will demeanour for a small distinctness upon is a guidance. The handling income superintendence looks a small bit light for a second quarter, since where their costs as great as revenues have been trending.

“The greatest regard has been margins. A lot of investors have been seeking for a association to denote that it could get precedence upon all of these investments it’s been making.

“They have been really identical to what you saw behind in a 2004 to 2006 timeframe when a association was creation a lot of investments as great as margins got squeezed. Then in a years following, margins stretched as great as income accelerated.

“It looks identical to a association is in that upon all sides right now. We competence not see utterly as most of an increase in speed upon a revenue, since a distance of a company, though it does demeanour identical to they have a capability to beget a margins.”

DAN GEIMAN, ANALYST, MCADAMS, WRIGHT, RAGEN

“Overall, a positives have been outweighing a negatives. Certainly a concentration during this indicate is upon growth, as great as they’re removing a pass onto a costs, that have been really eating in to earnings.

“The superintendence they’re upon condition that is a good. There’s a ton of prolonged tenure event out there. Long-term event for them is huge.”

KEN SENA, ANALYST, EVERCORE PARTNERS

“The formula so distant demeanour really good. Revenue beat, margins came in improved than expected. We were awaiting fifteen cents EPS as great as it came in during twenty-six cents — as great as you were substantially a tall finish of a Street of where a margins were. This was even improved than you were expecting.

“You have been starting from a really low point: medium alleviation upon a commission basis. It looks flattering good. you consider a margins have a prolonged approach to go, though you consider during slightest to see them relocating in a right citation is an enlivening sign.”

(Reporting by Jennifer Saba in New York as great as Sarah McBride as great as Poornima Gupta in San Francisco)

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