Amazon's Net Income Jumps 153% in Fourth Quarter

by Susie Olson February 3, 2018, 9:20
Amazon's Net Income Jumps 153% in Fourth Quarter

For the fourth quarter ended December, the company posted a net profit of $1.86 billion on net sales of $60.5 billion.

On a consolidated basis (including global, North America and Amazon Web Services), Amazon registered profits at almost Dollars 2 billion in the said quarter compared to USD 749 million in the year-ago period. Amazon Web Services brought in $5.1bn, up from $3.5bn in Q4 2016, and its operating income grew by 46 per cent to $1.4bn, accounting for 73 per cent of all net income that Amazon posted for the period.

However, net sales in the segment grew to Dollars 18.03 billion in the fourth quarter, from USD 13.96 billion a year ago.

The recent US tax reform law had a positive effect on Amazon as it offered the company a benefit of approximately $789 million during the period.

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Net sales for the full year increased 31% to $177.9 billion, compared with $136 billion in 2016. Excluding the favorable impact of currency exchange rates, revenue jumped 36%. That wide range compares to $1 billion in operating income in the first quarter of 2017.

"Our 2017 projections for Alexa were very optimistic, and we far exceeded them", said Bezos in a statement. Founder and CEO Jeff Bezos introduces product after product to drive new sales and customer loyalty.

So if Amazon is renewing its push with Alexa, you can expect more devices powered by the voice assistant, more Alexa skills and features, and likely more Alexa-compatible home appliances. Revenue growth is accelerating even as the company is expected to cross $200 billion in sales this year. Whole Foods Market, which Amazon acquired in August, contributed about $4.5 billion in North American sales. The company boasted of $2 billion in profits, as millions of new customers used its Prime fast-shipping club during the holiday season, with changes to USA tax law adding to its bottom line. By comparison, the 2017 Q4 profit is more than double its net profit for the same period the previous year. It equips warehouses with robots, builds new data centers, invents new products and updates devices like its voice-activated Echo digital speaker, which Amazon sees as key to getting a foothold in customers' homes and vehicles. The firm is focusing on cutting prices and many Whole Foods stores feature automated lockers where customers can pick up their Amazon orders. Visit MarketWatch.com for more information on this news. Amazon has also inked deals with several appliance manufacturers and even vehicle companies to feature Alexa integrations in their products. Bezos said the company would be doubling down on Alexa in the future, because of its surprising success.


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