Amazon’s shares soared in after-hours trading after the ecommerce giant posted first-quarter results that topped expectations on both profit and revenue.
For the quarter ended March 31, 2023, Amazon's profit was $3.2 billion or $0.31 per share, above the consensus analyst expectation of earnings per share of $0.20.
Revenue increased 9% to $127.4 billion from $116.4 billion in the year-ago quarter, ahead of Wall Street’s expectation of $125.5 billion.
Even the company’s cloud segment Amazon Web Services (AWS), which Amazon CEO Andy Jassy recently warned had experienced short-term headwinds, delivered above expectations.
AWS sales increased 16% year-over-year to $21.4 billion, above the 15% growth to about $21 billion expected by analysts.
“There’s a lot to like about how our teams are delivering for customers, particularly amidst an uncertain economy,” Jassy said in a statement.
The company’s second-quarter guidance was on par with the Street’s expectation, with Amazon forecasting net sales of between $127 billion and $133 billion compared to the consensus expectation of $131 billion.
Investors welcomed the results sending Amazon’s shares 10.6% higher to US$121.71.
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