Amazon shares higher on 1Q earnings
Shares of Amazon.com have surged after the e-commerce powerhouse reported better-than-expected first-quarter results fuelled by a 28 per cent jump in revenue.
The Seattle-based company’s net income totalled $US513 million, or $US1.07 per share, compared with a loss in the same period a year earlier. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of US61 cents per share.
In a statement, chief executive Jeff Bezos said sales of Amazon devices such as the Echo smart speaker and the Fire TV stick were strong, although the company does not break out specific sales figures.
Amazon’s cloud-based services, called Amazon Web Services, remained another bright spot, with revenue up 64 per cent at $US2.57 billion.
The online retailer’s revenue rose to $US29.13 billion in the period, also exceeding Street forecasts. Ten analysts surveyed by Zacks expected $US27.94 billion.
For the current quarter ending in July, Amazon said it expects revenue in the range of $US28 billion to $US30.5 billion. Analysts surveyed by Zacks had expected revenue of $US28.14 billion.
Amazon shares jumped $US75.50, or 12 per cent, to $US677.50 in extended trading following the release of the earnings report.
Through the close of regular-session trading Thursday, the company’s stock was down 11 per cent since the beginning of 2016, while the Standard & Poor’s 500 index has climbed almost two per cent.