Amazon Inc. (AMZN) - Get Report posted much stronger-than-expected first quarter earnings Thursday, thanks in part to a surge in revenues from its web services division, sending shares to a fresh record high in after-hours trading.
Amazon said net income for the three months ending in March was pegged at $15.79 per share, more than tripling last year's $5.01 total and smashing the Street consensus forecast of $9.54 per share. Group revenues, Amazon said, surged 44% from last year to $108.5 billion, topping analysts' estimates of a $104.55 billion tally.
Looking into the current quarter, Amazon said it sees operating income of between $4.5 billion to $8 billion on revenues in the range of $110 billion to $116 billion.
“Two of our kids are now 10 and 15 years old—and after years of being nurtured, they’re growing up fast and coming into their own,” said CEO Jeff Bezos. “As Prime Video turns 10, over 175 million Prime members have streamed shows and movies in the past year, and streaming hours are up more than 70% year over year. Amazon Studios received a record 12 Academy Award nominations and two wins.
"In just 15 years, AWS has become a $54 billion annual sales run rate business competing against the world’s largest technology companies, and its growth is accelerating—up 32% year over year," he added. "Companies from Airbnb to McDonald’s to Volkswagen come to AWS because we offer what is by far the broadest set of tools and services available, and we continue to invent relentlessly on their behalf. We love Prime Video and AWS, and we’re proud to have them in the family.”
Amazon shares, which closed at $3,471.31 each after rising 0.37% on the session, were marked 3.2% higher in after-hours trading immediately following the earnings release to indicate a Friday opening bell price of $3,580.09 each.
Amazon Web Services, the group's market-leading cloud business, saw net sales rise 32.1% to $13.5 billion, falling shy of the 50% gains recorded by rival Microsoft's (MSFT) - Get Report Azure business earlier this week.
Physical store sales, Amazon said, fell 15.5% to $3.92 billion, while third-party seller services sales surged 63% to $23.709 billion. Online store sales rose 44.3% to $52.9 billion.