Amazon Inc. stock rose 12% to USD 311.780 per share after the announcement of the fourth and full year 2014 financial results. High growth rate in revenues (20% in 2014) and 15% for the last quarter of 2014 on a year on year basis has helped to surpass USD 300 per share.
Fourth Quarter Results
Amazon.com Inc. reported fourth-quarter net income of USD214 million or USD0.45 per share, compared to USD239 million or USD0.51 per share, prior year.
Net sales increased 15% to USD29.33 billion from USD25.59 billion last year. Excluding the USD895 million unfavourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 18% compared to fourth quarter 2013.
Financials for the Year 2014
Net sales increased 20% to USD88.99 billion, compared with USD74.45 billion in 2013. Excluding the USD636 million unfavourable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 20% compared with 2013.
Operating income was USD178 million, compared with operating income of USD745 million in 2013.
Net loss was USD241 million, or USD0.52 per diluted share, compared with net income of USD274 million, or USD0.59 per diluted share, in 2013.
First Quarter 2015 Guidance
- Net sales are expected to be between USD20.9 billion and USD22.9 billion, or to grow between 6% and 16% compared with first quarter 2014.
- Operating income (loss) is expected to be between USD(450) million and USD50 million, compared to USD146 million in first quarter 2014.
The company has a long term debt of USD 3.19 bn at the end of fourth quarter of 2014 and has a current market capitalization of USD 145 billion with a price of USD 311.780 per share. The Price to Book Value is 13.5 and the Market Capitalization to Sales ratio is 1.629 (FY14).