- Amazon’s forecast for second-quarter operating income is $13.0 billion to $17.5 billion, which is below the $17.82 billion estimate.
- Second-quarter net sales are projected to be between $159.0 billion and $164.0 billion, aligning closely with the $161.42 billion estimate.
- In the first quarter, Amazon reported net sales of $155.67 billion, marking an 8.6% year-over-year increase, slightly above the $155.16 billion estimate.
- Online stores achieved net sales of $57.41 billion, a 5% growth year-over-year, exceeding the estimated $56.85 billion.
- Physical stores saw a 6.4% increase in net sales to $5.53 billion, surpassing the $5.41 billion estimate.
- Net sales from third-party seller services totaled $36.51 billion, a 5.5% year-over-year increase, but below the $36.98 billion estimate.
- Subscription services recorded net sales of $11.72 billion, up by 9.3% year-over-year, slightly above the estimated $11.65 billion.
- Amazon Web Services (AWS) achieved net sales of $29.27 billion, a 17% year-over-year increase, just shy of the $29.36 billion estimate.
- North America net sales reached $92.89 billion, a 7.6% increase year-over-year, slightly above the $92.63 billion estimate.
- International net sales amounted to $33.51 billion, reflecting a 4.9% increase year-over-year, exceeding the $33.07 billion estimate.
- The company’s EPS was $1.59, compared to $1.86 in the previous quarter, and surpassed the $1.36 estimate.
- Operating income for the first quarter was $18.41 billion, 20% higher year-over-year, above the $17.51 billion estimate.
- Amazon’s operating margin improved to 11.8%, compared to 10.7% year-over-year, and exceeded the 11.2% estimate.
- Fulfillment expenses rose by 10% year-over-year to $24.59 billion, surpassing the $23.78 billion estimate.
- The seller unit mix remained stable at 61%, unchanged from the previous year, and below the estimated 61.8%.
- For the second quarter, Amazon anticipates a 7% to 11% increase in net sales compared to the same period in 2024.
Amazon.com Inc on Smartkarma
Independent analysts on Smartkarma have been closely covering Amazon.com Inc, providing valuable insights for investors. Brian Freitas highlights upcoming capping changes that will result in a substantial round-trip trade of US$13bn, with significant inflows expected for Amazon.com among other top companies like Tesla and Microsoft. Meanwhile, Baptista Research emphasizes Amazon’s robust fourth-quarter performance in 2024, with a revenue growth of 10% driven by strategic product expansion and enhanced delivery services, leading to a notable increase in operating income to $21.2 billion.
Further analysis by MBI Deep Dives delves into Amazon’s financial updates, showcasing the challenges faced in fourth quarter 2024 due to a significant FX headwind. Both AWS and advertising segments continued to drive growth, with AWS growing at 19% YoY. Baptista Research also sheds light on the transformative nature of Amazon’s revenue growth and operational improvements, alongside heavy investments in technology and infrastructure, positioning the company for long-term growth despite immediate profitability considerations.
A look at Amazon.com Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Amazon.com Inc has a positive long-term outlook. The company scores high in growth, resilience, and momentum, indicating a strong potential for future growth and performance. With a focus on innovation and expanding its offerings, Amazon is well-positioned to continue its upward trajectory in the market.
Although Amazon scores lower in value and dividend factors, its strength lies in its ability to sustain growth and adapt to changing market conditions. As an online retail giant offering a wide range of products and services, Amazon’s agility and strong market presence are key factors driving its optimistic outlook for the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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