Amazon crushed analyst earnings estimates for the fourth quarter as full fiscal year sales surpassed $280 billion, as Jeff Bezos pointed to Prime services driving growth.
In the fourth quarter, net income increased to $3.27 billion, or $6.47 per diluted share, from $3.03 billion, or $6.04 per diluted share, in the 2018 fourth quarter. Amazon topped a MarketBeat analyst consensus diluted earnings per share estimate of $3.98.
Net sales in the fourth quarter gained 21% to $87.44 billion when compared to $72.38 billion in the year-prior period, with product sales up to $50.54 billion from $44.7 billion in the year-earlier quarter. Operating income advanced to $3.88 billion in the quarter from $3.79 billion in the year-previous period.
For the full fiscal year, net income increased to $11.59 billion, or $23.01 per diluted share, from $10.07 billion, or $20.14 per diluted share, in 2018.
Net sales in the fiscal year increased 20% to $280.52 billion when compared to $232.89 billion in the previous year, with product sales up to $160.41 billion from $141.92 billion a year earlier. Operating income advanced to $14.54 billion from $12.42 billion in the previous year.
Jeff Bezos, Amazon founder and CEO, said, “More people joined Prime this quarter than ever before, and we now have over 150 million paid Prime members around the world. We’ve made Prime delivery faster. The number of items delivered to U.S. customers with Prime’s free one-day and same-day delivery more than quadrupled this quarter compared to last year. Members now have free two-hour grocery delivery from Amazon Fresh and Whole Foods Market in more than 2,000 U.S. cities and towns. Prime members watched double the hours of original movies and TV shows on Prime Video this quarter compared to last year, and Amazon Originals received a record 88 nominations and 26 wins at major awards shows.”