Amazon (AMZN) will report fourth quarter results this afternoon and management will host a call at 17:30.

Analysts expect fourth quarter operating income down 28% to $2.73 bln, with EPS down 33% to $3.97 and revenue up 19% to $86.09 bln. Amazon guided for fourth quarter operating income of $1.2-2.9 bln on revenue of $66-70 bln.

The Street expects first quarter operating income down 9% to $4.0 bln with revenue up 20% to $71.6 bln.

TECHS:

With a market cap of ~$925 bln, the stock trades at ~20x forward cash flow estimates, a slight discount to Microsoft and a slight premium to Apple and Facebook


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RESULTS

Amazon beats Q4 profit, rev; guides Q1 inline

Q4 EPS $6.47 vs $3.98 S&P Capital IQ Consensus; operating income $3.9 vs. $2.7 bln est and $1.2-2.9 bln guidance; revs $87.4 vs $86.09 bln S&P Capital IQ Consensus Estimate

Sees Q1 OI $3.0-4.2 bln vs $4.0 Estimate; sees revs $69-73 bln vs $71.59 bln S&P Capital IQ Consensus Estimate

Operating cash flow increased 25% to $38.5 billion for the trailing twelve months, compared with $30.7 billion for the trailing twelve months ended December 31, 2018. Free cash flow increased to $25.8 billion for the trailing twelve months, compared with $19.4 billion for the trailing twelve months ended December 31, 2018. Free cash flow less principal repayments of finance leases and financing obligations increased to $16.2 billion for the trailing twelve months, compared with $11.6 billion for the trailing twelve months ended December 31, 2018. Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $12.5 billion for the trailing twelve months, compared with $8.4 billion for the trailing twelve months ended December 31, 2018.