Amazon.com (AMZN) Shares Soar on First Quarter Earnings Results
Shares of Amazon.com Inc. (AMZN) were trading up +74.21 or +12.33 percent to $676.21 per share in Friday’s premarket after the company released first quarter earnings that beat expectations yesterday after the market close. Amazon.com Inc. stock closed at $602.00 per share, down -4.57 or -0.75 percent in Thursday’s regular trading session.
Seattle, Washington based Amazon.com Inc.
Amazon.com reported net income of $513 million in the first quarter, or $1.07 per diluted share, which compares with a loss of -$57.0 million or -$0.12 per diluted share in 2015’s first quarter. Net sales for the period came to $29.1 billion versus $22.7 billion in the same period one year ago, an increase of +28 percent.
The amount had the exclusion of -$210 million for unfavorable year over year changes in foreign exchange rates throughout the quarter. Analysts expected the company to report earnings of $0.58 on revenue of $28.0 billion.
Jeff Bezos, founder and Chief Executive Officer of Amazon.com, stated in the company’s press release that, “Amazon devices are the top selling products on Amazon, and customers purchased more than twice as many Fire tablets than first quarter last year. Earlier this week, the $39 Fire TV Stick became the first product ever — from any manufacturer — to pass 100,000 customer reviews, including over 62,000 5 star reviews, also more than any other product ever sold on Amazon. Echo too is off to an incredible start, and we can’t yet manage to keep it in stock despite all efforts. We’re building premium products at non-premium prices, and we’re thrilled so many customers are responding to our approach.”
Amazon reported that North American sales grew significantly to $17.0 billion, up almost +27 percent and contributing to $588 million in profit. The highlight, however, was the company’s Amazon Web Services division, which managed to grow +64 percent year on year. The Web Services division’s operating income increased to $716 million, with revenue for the division of $2.57 billion.
The company announced a number of additions to its products, including the Kindle Oasis, the thinnest and lightest Kindle, and two Alexa enabled devices: Amazon Echo Dot, a voice-controlled, hands-free device for less than $90, and Amazon Tap, an Alexa enabled Bluetooth and Wi-Fi speaker selling for under $130.
Amazon.com’s guidance for the second quarter is for net sales of between $28.0 billion and $30.5 billion, or a growth rate of +21 percent and 32 percent versus the second quarter of 2015. Operating income is expected to be between $375 million and $975 million, which compares to $464 million in the second quarter of 2015. Amazon shareholders and the market are showing their optimism in this morning’s premarket, with the stock up over 12 percent, there could be more upside in today’s regular session.
Other News About AMZN
Amazon CEO Jeff Bezos Becomes World's Fourth Richest Person With $6 Billion Gain
Based on Amazon.com stock’s current price, Bezos net worth is estimated to be $59.2 billion.
The Complete Guide To Everything Owned By Amazon
A comprehensive list of the businesses owned by Amazon.com.
Other Stocks in the News
Exxon Mobil profit beats expectations on big cost cuts
Company reported net income of $1.81 billion or $0.43 per share versus an expectation of $0.31 per share.
Facebook shelled out $5 million to keep Zuckerberg safe and sound
Facebook cited the high visibility of its CEO in spending the comparatively high sum in security last year.