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Amazon.com Inc. doubled its profit in the first three months of 2019, according to a profit report released Thursday, sending about 1% higher shares during the extended session.
Amazon
AMZN, + 0.03%
Thursday announced a profit of $ 3.6 billion in the first quarter, or $ 7.09 per share, for a turnover of $ 59.7 billion, up $ 3.27 per share. there is a year for income of 51 billion. This is a record quarterly net profit for the Internet giant, which recorded a turnover slightly above $ 3 billion for the holiday season of 2018, the previous record. Amazon has now achieved record revenues in four consecutive quarters, generating profits of about $ 12 billion over this period.
Analysts said Amazon would report averaging $ 4.70 a share on a $ 59.68 billion business, according to FactSet. Amazon had forecast revenues of 56 to 60 billion dollars for the quarter, which disappointed investors at the time.
Amazon's core e-commerce business generated the majority of revenue, $ 35.81 billion and $ 16.19 billion in North America, with an operating profit of $ 2.29 million. billion and an international operating loss of $ 90 million. Amazon Web Services, the cloud computing arm of the company, reported $ 2.22 billion in operating profit for $ 7.7 billion, up $ 1.4 billion for a turnover of $ 5.44 billion a year ago. Analysts expected an average operating profit of $ 2.17 billion on a turnover of $ 7.7 billion.
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Operating profit from e-commerce activities was approximately $ 2.2 billion, with analysts' estimates of $ 1.52 billion in internal operating profit and $ 605 million in international loss . The $ 90 million loss on international operations is the closest to Amazon's earnings in this sector since the second quarter of 2016; Amazon has recorded an operating loss of more than $ 2.1 billion in international e-commerce in 2018.
"At first glance, a good report takes into account concerns about online spending," said Colin Sebastian, an analyst at Baird Equity Research, who outperformed and had a target price of $ 2,100 on Amazon stocks. "Positive features included a significant increase in margins for the North America and International segments (near-balanced Int results), the acceleration of subscription service growth and continued leverage on the execution costs. "
Amazon has shown a deceleration in one of its biggest growth segments from 2018, advertising. The company's "other" revenues, which include advertising with certain other services, increased 36% to $ 2.72 billion from the previous year and declined sequentially. Sales in this segment grew sequentially for at least 15 consecutive quarters and revenues increased by more than 117% in 2018.
For more: Amazon becomes a giant of advertising
"A larger-than-expected slowdown in other revenues after a record year of growth illustrates moderate sales by third-party sellers as the platform seeks to maximize profitability at a certain cost for these sellers," said Monica Peart, Director. forecasting at eMarketer, an email.
Amazon's physical stores, consisting primarily of Whole Foods Markets, continued to struggle for growth. Amazon recorded a $ 4.31 billion sales turnover from its physical stores, up slightly from $ 4.26 billion a year ago and lower than the average forecast expected by analysts from 4.39 billion USD.
The company forecast revenues of $ 59.5 to $ 63.5 billion in the second quarter, after generating $ 52.89 billion in revenue during this period last year. Analysts expected on average a turnover of 62.39 billion dollars.
Amazon shares closed up less than 0.1% to $ 1,902.25, before gaining about 0.5% after the release of the report. The stock has risen 27% since the beginning of the year, the S & P 500 index
SPX, -0.04%
gained 16.8%.
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