Amazon (AMZN) reported fourth quarter results that topped analyst expectations on both the top and bottom lines. The e-commerce giant reported earnings of $1.00 per share compared to estimates of $0.78. Net sales of $169.96 billion topped expectations of $166.21 billion. First quarter guidance was also about in line forecasts.

Yahoo Finance's Julie Hyman and Josh Lipton report the breaking details.

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Editor's note: This article was written by Stephanie Mikulich

Video Transcript

JULIE HYMAN: Amazon earnings coming out at $1 per share. That is better than the $0.78 that were estimated here. Overall net sales in the fourth quarter about $170 million. That, too, ahead of estimates for about $166.2 billion.

And then let's zero in on some important stuff here. First of all, AWS excluding the effects of currency. AWS, Amazon Web Services that is, its cloud business rising 13% in terms of its revenue. In the fourth quarter, the estimate for a gain of 11.8%. So AWS sales beating estimates.

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And then finally, I want to mention the forecast for the first quarter. So first quarter net sales seen as $138 billion to $143.5 billion. The estimate from analysts was $142 billion. So the midpoint from 138 to 143 actually leaves it a little room potentially to miss, but that upper end maybe comfortably above in the eyes of investors here. So from what I see thus far, the only thing, Josh, that I see that was a little bit shy of estimates was physical stores, i.e. mostly Whole Foods, but not entirely, but mostly, at $5.15 billion. That's a little bit shy of estimates. But otherwise, mostly pretty much beat here.

JOSH LIPTON: Yeah. You can see the immediate reaction investors. At least, initially, here, clearly, like what they see. And I think, yeah, just to zero in on AWS, the cloud computing business is so critical, because that is this company's profit center. And so to see net sales up XFX 13%, that does beat Street, was around 11.8%.

And now investors really want to hear about, OK, what does growth kind of look like over the next few quarters, not just growth for AWS, but also margins? And what are the drivers there going to be?

JULIE HYMAN: Yeah. You know, I mentioned that the sales forecast for the first quarter, the midpoint is a little below the average estimate. Operating income, however, is above. And let's remember, Amazon usually trades-- it feels like to me, correct me if I'm wrong-- trades more on profitability than it does right on sales, at least as of late. And operating margin in the fourth quarter also beating estimates, speaking of profitability, at 7.8% versus the 6.2% or so that analysts had been predicting.

The operating income forecast of $8 to $12 billion, the midpoint of that, above the $9.1 or so billion that analysts were estimating. So profitability here is working for the company. So that seems to be something as well that is helping matters.