Amazon exceeded expectations for the first quarter in response to strong AWS performance. Sales guidance is disappointing

Amazon (NASDAQ: AMZN) stock prices have risen due to overtime trading in response to results that exceeded expectations for the first quarter, including the company's victory in the Amazon Web Services division. However, profits were held back as sales forecasts for the second quarter fell short of expectations of $6 billion.

Commerce and cloud computing giants per share$0.98It raised profits and exceeded expectations by 15 cents.

Total revenue compared to the forecast of $142.5 billion 13% increaseThen it became 143.3 billion dollars.

Operating profit compared to the same period last year 218% increaseIt was 15.3 billion dollars, and the operating margin was 7.63% compared to the forecast 10.7% It was.

Free cash flow for the 12 months ending March 31, 2023 improved to $50.1 billion in inflows and $3.3 billion in outflows.

Equipment finance leases and principal repayments were reduced, and free cash flow improved to 48.8 billion dollars and outflows to 45 billion dollars.

Revenue for the critical AWS business is compared to an expected 14.7% growth 17% increaseThen it became 25 billion dollars.

CEO Andy Jassy said, “The growth rate of AWS has now reached $100 billion in annual revenue due to the combination of companies modernizing infrastructure and the appeal of AWS's AI capabilities.”

The company is launching infrastructure regions in Saudi Arabia and Mexico, and plans to expand its AWS infrastructure footprint through a $10 billion investment plan to build two data center complexes in Mississippi and the general availability of new AWS local zones in Atlanta, Chicago, and Atlanta.

How much is the company's online store sales 7% increaseAnd physical store sales 6% increaseI did it.

Third-party seller services 16% increaseAlso, advertising sales due to the growth of stores and the Prime Video business 24% increaseI did it.

What is the sales volume of subscription services11% increaseI did it.

North American sales increased 12% to $86.3 billion, and overseas sales increased 10% to $31.9 billion. Excluding the effects of foreign exchange, overseas sales increased 11%.

For the second quarter, Amazon (AMZN) expects sales to be between $144 billion and $49 billion, which is lower than the forecast of $150.1 billion.

Second-quarter sales include negative effects of exchange rates of up to 60 basis points.

Operating profit is expected to increase from $7.7 billion in the second quarter of 2023 to $10 billion to $14 billion.

The conference call is scheduled for Tuesday at 2:30 PM Pacific Time/5:30 PM Eastern Time.