Jeff Bezos, founder of Amazon
Katherine Taylor | Reuters
Amazon shares rose up to 3% in expanded trading on Thursday after the company released its earnings for the first quarter, beating Wall Street’s earnings and revenue expectations.
Here’s how the e-commerce giant has performed compared to the analyst estimates produced by Refinitiv:
- Merits: Expected $ 15.79 per share versus $ 9.54 per share
- Revenue: Expected $ 108.52 billion versus $ 104.47 billion
Few companies have benefited from the online shopping pandemic as much as Amazon. The first quarter results showed that the company’s business continues to be sustained by the pandemic. Income rose 44% year over year to $ 108.5 billion.
Amazon’s second-quarter forecast assumes the momentum will continue, which should help allay investor fears that business could slow in a post-pandemic environment. The company expects sales between $ 110 billion and $ 116 billion, beating Wall Street’s forecast of $ 108.6 billion.
Crucially, Amazon has confirmed in its forecast that this year’s Prime Day will happen in June, which will likely help improve second-quarter sales comparisons from last year. Ordinarily, Amazon’s annual two-day discount bonanza takes place in July, but the company has postponed the event to last October due to the uncertainty surrounding pandemics.
Outside of the core retail segment, Amazon’s cloud computing and advertising business continues to boom. Amazon Web Services posted net revenue of $ 13.5 billion for the quarter, up 32% year over year. Amazon does not report ad sales, but is in the company’s “Other” category, where sales rose 77% year over year to $ 6.9 billion.
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