Amazon Sees Earnings Double In Q4 2024 But Weak Guidance Causes Shares To Drop
Amazon.com (NASDAQ: AMZN) has delivered its fourth-quarter and full-year 2024 financial results, with total quarterly net sales reaching $187.8 billion—a 10% increase from $170.0 billion in the same quarter last year—and, when stripping out a $0.9 billion adverse impact from foreign exchange fluctuations, the growth rate edged up to 11%.
The company’s North America business generated $115.6 billion in sales, up 10% year over year, while its International segment posted $43.4 billion, reflecting an 8% increase. Notably, the Amazon Web Services (AWS) segment surged 19% to $28.8 billion.
Operating income in the fourth quarter leaped from $13.2 billion in Q4 2023 to $21.2 billion in Q4 2024, with North America’s operating profit rising from $6.5 billion to $9.3 billion and the International segment shifting from an operating loss of $0.4 billion to a profit of $1.3 billion. AWS operating income similarly jumped from $7.2 billion to $10.6 billion.
On the bottom line, net income for the quarter nearly doubled to $20.0 billion, equating to $1.86 per diluted share, compared with $10.6 billion or $1.00 per diluted share in Q4 2023.
The full-year figures show annual net sales climbing 11% to $638.0 billion from $574.8 billion in 2023, with North America contributing $387.5 billion in sales (up 10%) and International sales reaching $142.9 billion (up 9%). AWS revenue also grew 19% to $107.6 billion in 2024.
Operating income for the year soared from $36.9 billion in 2023 to $68.6 billion in 2024. North America’s operating profit jumped from $14.9 billion to $25.0 billion, while the International segment reversed its fortunes, turning a $2.7 billion loss in 2023 into a $3.8 billion profit. AWS operating income also increased from $24.6 billion to $39.8 billion.
Full-year net income also nearly doubled, rising from $30.4 billion in 2023 to $59.2 billion in 2024, with diluted earnings per share climbing from $2.90 to $5.53.
Further down, while operating cash flow for the trailing twelve months surged by 36% from $84.9 billion to $115.9 billion, free cash flow increased only modestly from $36.8 billion to $38.2 billion. Capital expenditures more than doubled in the fourth quarter, rising from approximately $14.6 billion in Q4 2023 to $27.8 billion in Q4 2024, as the company continues to invest heavily in technology, infrastructure, and its expanding AWS and artificial intelligence initiatives.
The balance sheet saw cash and cash equivalents climbing to $82.3 billion from $73.9 billion, bringing total current assets to $190.9 billion. Total current liabilities at the end of the period came in at $179.4 billion.
Despite these gains, Amazon’s forward guidance for the first quarter of 2025 has tempered market enthusiasm, as the company expects net sales to fall in the range of $151.0 billion to $155.5 billion—translating to a growth rate of only 5% to 9% compared with Q1 2024—primarily due to an anticipated large, unfavorable foreign exchange impact of approximately $2.1 billion.
Additionally, projected operating income for the upcoming quarter is set between $14.0 billion and $18.0 billion, against $15.3 billion in Q1 2024. These cautious estimates have already prompted a roughly 4% dip in after-hours trading.
Information for this briefing was found via Reuters, AP News, and the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
