Amazon profit trounces estimates, sales forecast muted

(Reuters) - Amazon.com Inc on Thursday trounced first-quarter profit estimates on soaring demand for its cloud and advertising services, but forecast second-quarter revenue largely below expectations. Net sales rose 17 percent to $59.70 billion, beating the analysts' average estimate of $59.65 billion. The company forecast net sales of between $59.5 billion and $63.5 billion for the second quarter, the midpoint of which was below analysts' average estimate of $62.37 billion, according to IBES data from Refinitiv

Amazon profit trounces estimates, sales forecast muted

(Reuters) - Amazon.com Inc on Thursday trounced first-quarter profit estimates on soaring demand for its cloud and advertising services, but forecast second-quarter revenue largely below expectations.

Net sales rose 17 percent to $59.70 billion, beating the analysts' average estimate of $59.65 billion.

The company forecast net sales of between $59.5 billion and $63.5 billion for the second quarter, the midpoint of which was below analysts' average estimate of $62.37 billion, according to IBES data from Refinitiv.

Amazon's net income rose to $3.56 billion, or $7.09 per share, in the first quarter ended March 31, from $1.63 billion, or $3.27 per share, sending its shares up 1.2 percent after the bell.

Net sales in North America, its biggest market, jumped 17 percent to $35.81 billion in the quarter.

Amazon Web Services revenue surged 41.4 percent to $7.70 billion, but missed the estimate of $7.72 billion.

Amazon's operating expenses rose 12.6 percent in the quarter to $55.28 billion as it invested in electric-car maker Rivian and self-driving car startup Aurora and continued spending on its Prime programme, grocery delivery from Whole Foods stores and original video content.

Amazon has also been gaining immensely from its highly profitable ad sales business. The company said revenue from the category and some other items grew 33.7 percent to $2.72 billion, but missed estimates of $2.85 billion.

(Reporting by Arjun Panchadar in Bengaluru; Editing by Arun Koyyur)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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