Amazon.com, Inc. (NASDAQ:AMZN) went beyond Wall Street’s forecasts for the Q1 regardless of a 35% decline in earnings for the period, driving shares of the e-commerce giant higher in extended trades.
The stock advanced in excess of 13% in extended trades, after ending the regular session up 0.8% to $195.99. The firm issued its typically conservative guidance for the existing quarter that was lower than analysts’ estimates.
For the quarter closed March 31, Amazon announced net income of $130 million, or 28 cents per share, against net income of $201 million, or 44 cents per share, for the similar period previous year.
Operating income dropped 40% to $192 million, denoting an operating margin of 1.5% for the period. Revenue increased 34% to $13.18 billion.
Analysts were expecting earnings of 6 cents per share on sales of $12.9 billion, in accordance with consensus forecasts from FactSet Research.
Sales of media products increased 19% for the three months to $4.7 billion. Electronics and other general merchandise sales rose 43% to almost $8 million. Amazon’s “other” category, which comprises its growing cloud-based Web services business, increased 61% to $500 million for the period.
For the Q2, the company anticipated revenue to come in the range of $11.9 billion to $13.3 billion. Analysts had been looking for $12.8 billion in sales for the quarter.
Amazon moreover predicted its operating income line to come in a range a loss of $260 million and earnings of $40 million. Analysts had been predicting operating income near $97 million for the three months.
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