Amazon posts bigger than expected rise in quarterly profits, sales

Listen to this article

00:00
00:00

Amazon shares rallied in after-hours trading on Thursday after the e-commerce group posted a bigger than expected jump in quarterly profits and sales.

Revenues rose by 23 per cent year-over-year in the first quarter to $35.7bn. Net profits climbed to $724m, or $1.48 a share, from $513m, or $1.07 a share, on the same basis.

The results exceeded Wall Street forecasts for earnings of $1.08 a share on sales of $35.3bn. Shares zipped higher by 4.1 per cent in extended trading. That would add to a year-to-date rise of 22.5 per cent.

The Amazon Web Services division, which sells computing power in the cloud and is used by a wide range of companies, generated $3.67bn in revenues, up from $2.57bn in the same quarter in 2016. Profits were up to $890m from $604m.

For the current quarter, Amazon said it expects company sales to be $35.25bn to $37.75bn, compared with Street estimates of $36.91bn.

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.