Amazon Reports 41% Jump In Profits As OZ Roll Out Progresses
Amazon.com has reported a 41% net income rise for the quarter of 41% to $970M, their shares rose 4% on the news.
This was the ighth straight quarter that Amazon who in the past has had an up and down ride when it comes to performance has posted a net profit.
Sales rose by 2.6% to $US35.71 billion, slightly ahead of analysts’ average estimate. The Company is set to enter the Australian market late in 2017 and in earnest in 2018.
Sales from AWS, the company’s fast-growing business to host companies’ data and handle their computing in the cloud, rose 42.7 per cent to $US3.66 billion, matching the average analyst estimate, according to market research firm FactSet StreetAccount.
According to Reuters the company also said a stronger US dollar hurt its overall sales by $US492 million and that the quarter faced tough comparisons with the year-ago quarter, when the February 29 leap day gave shoppers an extra 24 hours to spend.
Amazon forecast that operating income in the second quarter would be between $US425 million and $US1.075 billion, below the consensus estimate of $US1.46 billion, according to market research firm FactSet StreetAccount.
That may be from ongoing investments, such as their move into Australia stepped up from a year ago to help Amazon stay ahead of the competition.
Amazon has said it plans to build new warehouses and create more than 130,000 full-time and part-time jobs by mid-2018 to speed up delivery. It is investing more than $US5 billion in India to gain market share while also looking for warehouse and logistic centres in Australia.
The company is also racing to make its voice assistant Alexa, which competes with Apple’s Siri, a ubiquitous platform like Windows has been for desktop or Android has been for phones.
Amazon forecast sales for the second quarter of between $US35.25 billion and $US37.75 billion, which includes an unfavourable impact of about $US720 million from foreign exchange rates.