Amazon crushes Q1 earnings estimates while revenues come in-line

Amazon.com Inc. (NASDAQ: AMZN) surpassed market expectations on earnings while revenues came in line with estimates for the first quarter of 2019. Shares were up 1.1% in after-market hours on Thursday.

Net sales rose 17% year-over-year to $59.7 billion. Excluding the $1.1 billion unfavorable impact from year-over-year changes in foreign exchange rates, net sales increased 19%.

Net income improved to $3.6 billion, or $7.09 per share, from $1.6 billion, or $3.27 per share, in the year-ago quarter.

North America net sales grew 17% year-over-year to $35.8 billion while International sales grew 9% to $16.1 billion. Amazon Web Services (AWS) sales grew 41% to $7.6 billion.

Net sales from online stores increased 10% to $29.4 billion while sales from physical stores grew 1% to $4.3 billion. Worldwide shipping costs increased 21% to $7.3 billion.

Also see: Amazon Q1 2019 Earnings Conference Call Transcript 

For the second quarter of 2019, Amazon expects net sales to grow 13-20% to a range of $59.5 billion to $63.5 billion. Operating income is expected to be $2.6 billion to $3.6 billion.

In the coming months, Amazon and Google will launch the 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 available across Android TV device partners, and the YouTube TV and YouTube Kids apps will also come to Fire TV later this year. Amazon said Fire TV now has more than 30 million active users.

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