Amazon Profit Drops in Q4 2011 Earnings Report

From DailyTech: Amazon released its fourth-quarter earnings from 2011 today, showing off its massive holiday success with e-readers and its Kindle Fire tablet, yet still missing previous estimates.

Amazon reported a 35 percent increase in net sales from $12.95 billion in Q4 2010 to $17.43 billion in Q4 2011. Despite the increase, the company missed Bloomberg analyst expectations of $18.3 billion.

Amazon also saw a 58 percent drop in quarterly profit from $416 million, or 91 cents per share, in Q4 2010 to $177 million, or 38 cents per share, in Q4 2011.

Amazon reported $260 million in Q4 2011 operating income, down from $474 million in Q4 2010. Operating cash flow increased 12 percent to $3.90 billion, up from $3.50 billion in 2010, and free cash flow fell 17 percent to $2.09 billion from $2.52 billion in 2010.

The online retailer ended Q4 2011 with 56,200 employees, which is a 67 percent increase from Q4 2010.

For the full-year 2011, net sales jumped 41 percent from $34.20 billion in 2010 to $48.08 billion in 2011. Operating income fell 39 percent to $862 million from $1.41 billion in 2010, and net income dropped 45 percent to $631 million ($1.37 per share) from $1.15 billion ($2.53 per share) in 2010.

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