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In the second quarter, Amazon will spend all of its normal surplus of $ 4 billion on crown costs, according to Chief Executive Jeff Bezos. Therefore, the result is expected to be sent in less.
Amazon boss Jeff Bezos.
Pablo Martinez Monsivais / AP
published:,
E-commerce giant Amazon released the figures for the first quarter of the year after the stock market ended.
It showed revenues of $ 75.5 billion, corresponding to a growth of 26 percent compared to the same period last year. Earnings per share were $ 5.01, down from $ 7.09 per share in the first quarter of last year.
According to Refinitive, analysts anticipated $ 73.74 billion in revenue for the period, writes CNBC. Earnings per share were expected to hit $ 6.25.
Operating profit in the first quarter of the year ended at $ 4.0 billion, compared to $ 4.4 billion in the first quarter of 2019.
“The hardest thing we have experienced”
Amazon CEO Jeff Bezos said in a statement that “the crown crisis is the most difficult we have ever experienced.”
The report indicates that Amazon expects to have an operating profit of between minus $ 1.5 billion and $ 1.5 billion in the second quarter of 2020. In the second quarter of last year, the company posted an operating profit of $ 3.1 billion.
Magic costs around $ 4 billion in crown.
– In normal times, we would expect to earn around $ 4 billion in operations in the second quarter, but these are not normal times. Instead, we expect to spend all of the $ 4 billion, and perhaps more, on coronary-related costs to bring products to customers and keep our employees safe, Bezos said.
Sales in the second quarter of this year are estimated to end between $ 75 billion and $ 81 billion, an increase of between 18 percent and 28 percent from the second quarter of last year, he said.
Amazon shares are down about 5 percent in Wall Street retail.
Share Jump
With stores closed due to the crown crisis, more commerce is moving online. It has given Amazon a boost, where the online giant has gone against the grain on Wall Street, despite big declines in the broad market.
Growing demand for e-commerce and expectations that Amazon Web Services’ cloud service will increase as more people work from home have contributed to the price increase, according to Bloomberg.
“We expect Amazon to generate strong first quarter revenue growth with accelerating second quarter growth as consumers spend more online shopping,” analyst Aaron Kessler wrote in a note before earnings, according to Yahoo Finance. .
“We believe that the earnings outlook will be more varied, as higher revenue growth is likely to be offset by much higher costs in the short term,” he added.
While millions of Americans are losing their jobs, Amazon has also announced that it will employ nearly 175,000 new employees. At the same time, he paid the wages of several of his employees. For the Financial Times, analyst Brent Thill at the Jefferies brokerage said the new hires are “direct evidence that consumers are breaking Amazon’s value chain with overwhelming demand.”
