Amazon reported a strong first quarter on Tuesday, with revenue surging 13% year-over-year to $143.31 billion, surpassing analysts’ estimates of $142.5 billion. Earnings per share based on generally accepted accounting principles (GAAP) soared to 98 cents, compared to 31 cents in the same period last year and exceeding the consensus estimate of 83 cents. Notably, operating income more than tripled to $15.3 billion, significantly outperforming the forecast of $11.26 billion and well above management’s previous guidance of $12 billion.
Amazon Web Services (AWS), the company’s cloud computing arm, continued its impressive performance, with sales soaring 17% to $25.04 billion in the quarter, surpassing expectations. AWS’s operating profit margin also expanded significantly, resulting in a nearly $2 billion boost to operating income versus expectations. Amazon’s cost-cutting efforts across its e-commerce operations were evident, leading to lower-than-expected fulfillment costs and contributing to the strong financial results.
While Amazon’s first-quarter performance was impressive, its outlook for the current quarter was somewhat cautious. The company expects second-quarter net sales to be between $144 billion to $149 billion, growing 7% to 11% year over year, slightly below the $150.1 billion consensus estimate. However, operating income guidance is expected to come in closer to the mark at $10 billion to $14 billion versus $12.73 billion expected.
Despite the tempered outlook, Amazon’s strong first-quarter results and ongoing commitment to cost optimization and innovation in cloud computing and advertising position the company well for continued growth in the future. The company’s focus on reducing the cost-to-serve and improving delivery times for Prime customers is expected to further enhance its competitive advantage in the e-commerce market.
