<p>Amazon (NASDAQ: AMZN) earnings for the first quarter of 2020 have AMZN shares falling after Thursday Thursday. This comes after reporting a diluted earnings per share (EPS) of $ 5.01. It’s nowhere near the Wall Street estimate of $ 6.25. However, the e-commerce company’s revenue of $ 75.45 billion is higher than analysts’ estimates of $ 73.61 billion.
Source: Mike Mareen / Shutterstock.com
Now let’s take a closer look at the latest Amazon earnings report.
Earnings after dilution per share decreased by 29% from $ 7.09 during the first quarter of 2019. Revenue increased by 26% from $ 59.7 billion during the same period last year. Operating profit of $ 3.99 billion is a decrease of 10% compared to the previous year from $ 4.42 billion. Amazon’s revenue report also has a net revenue of $ 2.54 billion. That is a decrease of 29% compared to its net profit of $ 3.56 billion reported in Q1 2019.
Jeff Bezos, founder and CEO of Amazon, said this in the earnings report:
“From online shopping to AWS to Prime Video and Fire TV, the current crisis shows the adaptability and sustainability of Amazon’s business like never before, but it’s also the most difficult time we’ve ever faced.”
Bezos also goes on to describe some plans for the second quarter of 2020. He notes that the company expects to generate $ 4 billion in operating profit, but that will not depend on it. Instead, the company will spend it on costs related to the new coronavirus.
The AMZN share fell 4.3% after the markets closed on Thursday.
At the time of writing, William White had no position in any of the above securities.
Article printed from InvestorPlace Media, https://investorplace.com/2020/04/amazon-earnings-miss-hammers-amzn-stock/.
© 2020 InvestorPlace Media, LLC