Amazon ( $AMZN ) Earnings Breakdown

Amazon ( $AMZN ) Earnings Breakdown

Highlights:
-Earnings reported 0.98 vs estimated 0.84 (+16.44%)
-Revenue reported 143.31b vs estimated 142.65b (+0.46%)
-Net Sales Increase: Amazon's net sales for the first quarter of 2024 rose by 13% compared to the same period in 2023, reaching $143.3 billion.
-Operating Income Surge: Operating income soared to $15.3 billion, a significant increase from $4.8 billion in the first quarter of 2023.
-Segment Sales Growth: North America segment sales increased by 12%, International segment sales increased by 10%, and AWS segment sales grew by 17% year-over-year.
-Net Income Growth: Net income for the first quarter of 2024 rose to $10.4 billion, compared to $3.2 billion in the first quarter of 2023.
-Operating Cash Flow Improvement: Operating cash flow surged by 82% to $99.1 billion for the trailing twelve months ended March 31, 2024, compared with $54.3 billion for the same period in 2023.

Good Parts:

-Strong Sales Growth: Amazon experienced robust growth in net sales across all segments, demonstrating its ability to attract and retain customers.
-Operating Income Expansion: The company's operating income saw a remarkable increase, indicating improved operational efficiency and cost management.
-Diversified Revenue Streams: The growth in North America, International, and AWS segments signifies Amazon's diversified revenue streams, reducing dependency on any single market.
-Net Income Improvement: With net income more than tripling from the previous year, Amazon showcased its profitability and ability to convert revenue into profit.
-Cash Flow Enhancement: The significant increase in operating cash flow and free cash flow reflects Amazon's strong financial position and ability to generate cash.

Bad Parts:

-Valuation Loss: Amazon incurred a pre-tax valuation loss of $2.0 billion from its investment in Rivian Automotive, impacting the net income for the first quarter of 2024 negatively.

Grades:

Income Statement: A
-Net Sales: Total sales increased from $127.4 billion in Q1 2023 to $143.3 billion in Q1 2024.
-Operating Income: Operating profit increased from $4.8 billion in Q1 2023 to $15.3 billion in Q1 2024.
-Net Income: Overall profit increased from $3.2 billion in Q1 2023 to $10.4 billion in Q1 2024.

Balance Sheet: A-
-Total Assets: The company's total assets increased from $527.9 billion as of December 31, 2023, to $531.0 billion as of March 31, 2024.
-Total Liabilities: Total liabilities decreased from $164.9 billion as of December 31, 2023, to $153.0 billion as of March 31, 2024.
-Stockholders' Equity: Shareholders' equity increased from $201.9 billion as of December 31, 2023, to $216.7 billion as of March 31, 2024.

Cash Flow Statement: A+
-Operating Activities: Cash generated from day-to-day operations increased significantly from $4.8 billion in Q1 2023 to $19.0 billion in Q1 2024.
-Investing Activities: Cash used for investments decreased from $(15.8) billion in Q1 2023 to $(17.9) billion in Q1 2024.
-Financing Activities: Cash from financing decreased from $6.4 billion in Q1 2023 to $(1.3) billion in Q1 2024.
Net Increase (Decrease) in Cash: Overall, there was a decrease in cash, cash equivalents, and restricted cash of $(4.5) billion in Q1 2024 compared to $(0.6) billion in Q1 2023.

Summary:

Amazon delivered an impressive first-quarter performance with substantial increases in net sales, operating income, and net income. The company showcased its ability to innovate, serve customers, and drive profitability across its diversified business segments. Despite facing challenges such as valuation losses, Amazon's robust financial metrics, including enhanced cash flows, reinforce its position as a market leader. Overall, Amazon's first-quarter earnings report reflects its resilience, adaptability, and continued growth trajectory.