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Amazon's Record $3.6B Profit Crushes Earnings Estimates

Amazon's Record $3.6B Profit Crushes Earnings Estimates
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Thursday, 25 April 2019 05:27 PM

Amazon.com handily beat Wall Street estimates for profit for the first quarter of 2019 -- reporting $3.6 billion net income, an all-time quarterly record for the ecommerce behemoth.

Sales increased 17% to $59.7 billion in Q1, with net profit more than doubling in the first quarter to deliver earnings of $7.09 per diluted share, the company said in a statement.

Analyst consensus estimates were for revenue of $59.65 billion and EPS of $4.72. The company's guidance for Q1 was for net sales of between $56 billion and $60 billion (below analysts' prior estimates of $60.8 billion).

Amazon's AWS cloud division again rained down impressive growth, with revenue up 41% to $7.7 billion (in line with Wall Street estimates).

Among other points the company called out in its earnings release, Amazon noted that its Fire TV line of connected devices now has more than 30 million active users, as previously announced.

In addition, the company called out its cease-fire with Google in their fight over video-streaming apps. The two companies over the next few months planning to launch an official YouTube app on Amazon Fire TV devices and Fire TV Edition smart TVs, as well as the Prime Video app for streaming to Chromecast and Chromecast built-in devices. Prime Video will also be broadly available across Android TV device partners, and the YouTube TV and YouTube Kids apps will also come to Fire TV later this year.

During Q1, Amazon Studios greenlit more than 20 new and returning local original series, including La Templanza in Spain, Wir Kinder vom Bahnhof Zoo in Germany, Bandish Bandits in India, El Presidente in Mexico, and The Bachelorette in Japan.

Also on the Prime Video front, the service debuted original series "Hanna," billed as a thriller/coming-of-age drama, based on the 2011 film, and announced the series was picked up for season two. Additionally, the film "Guava Island" starring Donald Glover and Rihanna, launched on Prime Video after its premiered at Coachella.

Last fall, Amazon (AMZN) announced its "HQ2" plans for a second base of operations in North America would be split between Queens in New York City and the Crystal City neighborhood in Arlington, Va., just south of Washington, D.C. But the company nixed plans for the NYC outpost after encountering political opposition, particularly over the more than $2 billion in tax incentives it was set to receive.

Separately, earlier this month Amazon CEO and founder Jeff Bezos reached final terms on his divorce from his wife, MacKenzie, under which Jeff is retaining 75% of the couple's Amazon shares as well as full voting control of 100% of the stake. MacKenzie Bezos will own shares representing about 4% of Amazon's outstanding common stock, meaning Jeff Bezos will retain a 12% stake -- and keeping his status as the world's wealthiest individual.

© 2019 Thomson/Reuters. All rights reserved.

   
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Amazon.com handily beat Wall Street estimates for profit for the first quarter of 2019 -- reporting $3.6 billion net income, an all-time quarterly record for the ecommerce behemoth.
amazon, profit, earnings, estimate
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2019-27-25
Thursday, 25 April 2019 05:27 PM
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