Amazon jumps after smashing earnings

Amazon jumps after smashing earnings

Amazon reported its first-quarter earnings results on Thursday after the bell.

It’s a huge beat across the board and Amazon stock is up roughly 7 percent in after-hours trading.

Here are the most important numbers:

Revenue: $51.04 billion vs. $49.78 billion, as estimated, according to Thomson Reuters
EPS: $3.27 per share vs $1.26 per share, as estimated, according to Thomson Reuters (not comparable)
AWS revenue: $5.44 billion vs. $5.25 billion, as estimated, according to FactSet
Amazon’s revenue, which includes sales from Whole Foods, increased 43 percent year-over-year. Its North America revenue jumped 46 percent to $30.7 billion, while international sales grew 34 percent to $14.8 billion.

Amazon’s cloud unit, AWS, continued to continued to be the growth driver of the company. For the quarter, AWS sales grew 49 percent year-over-year, to $5.44 billion, while generating $1.4 billion in operating income, a 73 percent share of Amazon’s total operating income.

In a prepared statement, Amazon CEO Jeff Bezos highlighted the massive success of AWS.

“AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down,” said Bezos. “As a result, the AWS services are by far the most evolved and most functionality-rich.”

Amazon’s “other” revenue, which primarily comes from its advertising business, saw a whopping 139 percent increase from last year, generating $2.03 billion in sales. Its subscription services revenue, which includes Prime memberships, also grew 60 percent to $3.1 billion.

Amazon gave second-quarter revenue guidance in the range of $51.0 billion to $54.0 billion, in-line with street estimate of $52.2 billion. Operating income is expected to fall between $1.1 billion and $1.9 billion, exceeding the $1.01 billion street estimate.

During the earnings call, investors will look for clues around Amazon’s plans for political damage control, further growth in its dominant cloud service, and investments in new segments, like Alexa and logistics.

Amazon continues to outperform the market with its stock up over 20 percent this year.

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