Jeff Bezos to step down as Amazon CEO, financial results announced for Q4

February 5, 2021 0 By boss


For the full year 2020, net sales increased 38 per cent to $386.1 billion, compared with $280.5 billion in 2019.

Amazon has announced that Jeff Bezos will transition to the role of Executive Chair in the third quarter of 2021 and Andy Jassy will become Chief Executive Officer at that time. The company has also announced financial results for the fourth quarter ended December 31, 2020.

As on January 4, 2021, Amazon (NASDAQ: AMZN) was quoting about $3333 having generated nearly 65 per cent, 32 per cent and 44 per cent over the last 12 months, 3 years and 5 years, respectively.

Net sales of the company have increased 44 per cent to $125.6 billion in the fourth quarter, compared with $87.4 billion in the fourth quarter of 2019. For the full year 2020, net sales increased 38 per cent to $386.1 billion, compared with $280.5 billion in 2019.

Excluding the $1.7 billion favourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 42 per cent compared with fourth-quarter 2019. For the full year 2020, excluding the $1.4 billion favorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 37 per cent compared with 2019.

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The operating income increased to $6.9 billion in the fourth quarter, compared with operating income of $3.9 billion in fourth quarter 2019. For the full year 2020, operating income increased to $22.9 billion, compared with operating income of $14.5 billion in 2019.

Overall, the net income increased to $7.2 billion in the fourth quarter, or $14.09 per diluted share, compared with net income of $3.3 billion, or $6.47 per diluted share, in fourth quarter 2019. For the full year 2020, net income increased to $21.3 billion, or $41.83 per diluted share, compared with net income of $11.6 billion, or $23.01 per diluted share, in 2019

Other financial highlights

  • Operating cash flow increased 72 per cent to $66.1 billion for the trailing twelve months, compared with $38.5 billion for the trailing twelve months ended December 31, 2019.
  • Free cash flow increased to $31.0 billion for the trailing twelve months, compared with $25.8 billion for the trailing twelve months ended December 31, 2019.
  • Free cash flow less principal repayments of finance leases and financing obligations increased to $20.3 billion for the trailing twelve months, compared with $16.2 billion for the trailing twelve months ended December 31, 2019.
  • Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $21.4 billion for the trailing twelve months, compared with $12.5 billion for the trailing twelve months ended December 31, 2019.
  • Common shares outstanding plus shares underlying stock-based awards totaled 518 million on December 31, 2020, compared with 512 million one year ago

Amazon became the world’s largest corporate purchaser of renewable energy, taking another step in its journey to be net-zero carbon by 2040.

Here is the First Quarter 2021 Guidance provided by Amazon:

Net sales are expected to be between $100.0 billion and $106.0 billion or to grow between 33 per cent and 40 per cent compared with first quarter 2020. This guidance anticipates a favorable impact of approximately 300 basis points from foreign exchange rates.

Operating income is expected to be between $3.0 billion and $6.5 billion, compared with $4.0 billion in first quarter 2020. This guidance assumes approximately $2.0 billion of costs related to COVID-19.

This guidance assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded.

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