Larry,
I was searching Amazon to see when they report earnings. Their website says Apr. 26 (tentative) Does this mean that the report might come out before or after this date. I'm asking because I would like to buy a Put (my first) on the stock right before eanings and was wondering if they might release before that date.

Thanks,
Jim

Jim,

I show 4/26 as well. Yes, it could be before or after. But if it is, it will probably only be a day before or after. So you have lots of time. If it’s after, your idea of buying puts is probably right on. Companies don’t usually delay a good earnings report.

Of course, with Amazon they have to have lots of time to figure out what expenses they can leave out so they can show some earnings. Let’s see, what will we show this time….pro forma? EBIDTA? Also, how can we show more revenue? I know. We’ll show revenue that’s “reasonably expected.” I’m kidding. But it’s almost that bad.

Larry

Jim,

Amazon does report this afternoon. It is my understanding that earnings will probably be in line with modest expectations. However, there may be some reduction in net profti margin.

Also, it is my understanding that Amazon will try to focus analysts attention on free cash flow (cash flow from operations minus capital expendatures) rather than earnings. Amazon has quite a bit of free cash flow.

By the way, I do agree that free cash flow is at least as important as earnings. But Wall Street will usually focus on earnings.

Larry