Amazon Does It Again With Earnings

Amazon.com, Inc. (NASDAQ: AMZN) reported first quarter financial results after markets closed Thursday. The company reported $3.27 in earnings per share (EPS) on $51.0 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $1.27 in EPS on $49.87 billion in revenue. The same period from last year had $1.48 in EPS on $35.71 billion in revenue.

During the quarter, Amazon Web Services (AWS) revenues increased 48% to $5.44 billion, up from $3.66 billion in the same period last year, with operating income of $1.4 billion.

In terms of its other segments Amazon reported:

• North American net sales increased 46% to $30.7 billion, with operating income of $1.15 billion.
• International sales increased 34% to $14.9 billion, with an operating loss of $622 million.

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As for guidance, the company expects to see net sales in the range of $51.0 billion to $54.0 billion, with operating income in the range of $1.1 billion to $1.9 billion in the second quarter. There are consensus estimates calling for $1.46 in EPS on $52.2 billion in revenue for the coming quarter.

Jeff Bezos, Amazon founder and CEO, commented:

AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down. As a result, the AWS services are by far the most evolved and most functionality-rich. AWS lets developers do more and be nimbler, and it continues to get even better every day. That’s why you’re seeing this remarkable acceleration in AWS growth, now for two quarters in a row. A huge thank you to all our AWS customers, and you can be sure we’ll keep working hard for you.

Shares of Amazon closed Wednesday at $1,517.96, with a consensus analyst price target of $1,675.20 and a 52-week range of $912.11 to $1,617.54. Following the announcement the stock was up 7% at $1,628.00 in the after-hours session.

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