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Amazon Earnings Topple Estimates As Does Outlook; Shares Surge

Amazon (AMZN) reported first-quarter results late Thursday that exceeded expectations, as did its revenue outlook for the second quarter. Amazon stock surged on the news.




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The e-commerce giant reported adjusted earnings of 15.79 a share on revenue of $108.5 billion. Analysts expected Amazon to report earnings of $9.54 a share on revenue of $104.5 billion, according to FactSet. Revenue jumped 44% from the year-ago period.

Amazon stock jumped 3.4%, to near 3,590, during after-hours trading on the stock market today.

The e-commerce giant expects second-quarter revenue in the range of $110 billion to $116 billion, above estimates of $108.5 billion.

It expects operating income between $4.5 billion and $8 billion in the second quarter, compared with $5.8 billion in the year-ago quarter. This guidance assumes approximately $1.5 billion of costs related to Covid-19, Amazon said.

Amazon Stock: AWS Up 32%

Revenue for the compan3y’s cloud service outfit, Amazon Web Services, jumped 32% to $13.5 billion, with an operating profit of $4.16 billion.

The company ended the quarter with more than 200 million paid Prime members worldwide. Amazon said a Prime Day is planned for the second quarter.

Amazon entered 2021 with plenty of big growth opportunities, including plans to expand its virtual health care program across the U.S. It is also expanding its prescription drug business and remains the clear leader in cloud computing services.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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