Amazon Smashes in Earnings in Latest Quarter


 
 
06:18 04/28/2019

Amazon AMZN  has just proven that it is one of the biggest companies around after reporting financial results for the first quarter.

Amazon beat on profits and matched what analysts had been expecting on revenue. The e-commerce giant saw its shares fly about 1% higher in after-hours trading on the report.

For the first quarter, reported earnings per share came to $7.09 while analysts waited for just $4.72 according to Refinitiv. Revenue at $59.7 billion was in line with expectations. AWS came in at $7.7 billion, which was also in line with what was anticipated.

Total revenue for the company saw a growth of 16.9% but it was also the slowest for the company since the first quarter of 2015.

The company also had big news, announcing that it is working on free one-day prime shipping.

“We’re already starting down this path,” said chief financial officer Brian Olsavsky. “We’ve expanded the number of zip codes eligible for one-day shipping.” Still, he says, “it will take us a significant amount of time to achieve.”
Olsavsky also revealed that Amazon expects to spend about $800 million to change Prime free delivery times from two days to one.

Amazon also announced last week that it will start delivering packages in garages.

'For many customers, doorstep delivery works absolutely fine,'' says Patrick Supanc, worldwide director of Amazon pickup points. 'But we do have customers who would like to have the option to deliver to an alternative location perhaps because they're busy and can't be home. (Or) perhaps they live in a place where they don't have a doorstep.''

“We think it truly has an opportunity to be a game changer in how people get their packages delivered,'' said Jeff Meredith, chief operating officer for Chamberlain, the company behind the garage opener technology.




This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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