E-commerce giant, Amazon, has delighted investors posting a first quarter earnings report that beat Wall Street analysts’ expectations on every metric. The free-spending online retailer reported net income of $513 million or $1.07 per share on $29.13 billion in revenue for the quarter. Its shares jumped 10% in after-hours trading following the announcement.Analysts had estimated the company would post 58 cents on revenues of $27.98 billion. The top line numbers are a total contrast to a loss of 12 cents a share on $22.72 billion of revenue in the first quarter of 2015.
Amazon’s cloud computing division, Amazon Web Services saw sales rise 64% to $2.57 billion from $1.57 billion in the same quarter last year while operating income for the business tripled to $604 billion from just $$195 million a year before
“Jeff Bezos’s penchant for pleasing the customer at all costs has certainly paid off,” said Monica Freeman, chief markets strategist at Monex BMO Securities. “The company has added a significant number of international Prime customers in the last three years,” she said alluding to the take up of the company’s Prime service which gives subscribers access to its streaming content library, unlimited photo cloud storage and free two-day shipping.
Amazon also wowed markets with a distinctly upbeat forward guidance for the current quarter. Chief Financial Officer, Brian Olsavsky said that the company expected net sales of between $28 – 30.5 billion compared to Wall Street consensus of $28.32 billion. Operating income is expected to be within a wide range between $375 million and $975 million compared to consensus estimates of $860.5 million.
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