Amazon (AMZN) will report first quarter results this afternoon and management will host a call at 17:30.

Analysts expect Q1 operating income up 61% to $3.1 billion, with EPS up 43% to $4.66 and revenue up 17% to $59.7 billion.

Amazon guided for Q1 operating income of $2.3-3.3 bln on revenue of $56-60 billion.

The Street expects Q2 operating income up 41% to $4.2 bln with revenue up 18% to $62.4 billion. 

Fourth quarter revenue growth by segment:

  • Online stores +14%

  • Physical stores -3%

  • Third-party services +28%

  • Subscription services +26%

  • AWS +46%, (mostly)

  • Advertising services +97%

If AWS sales growth can stay in the mid to high 40% range with improving margins investors will be happy. Amazon warned about higher investments in the segment last quarter.

Amazon is expected to grow operating profit 43% to $17.8 bln (6.5% margin) with revenue up 18% to $275 bln this year. Amazon tripled operating profit to over $12 bln (5.3% margin) in 2018 on revenue growth of 31% to $233 bln.


AMZN has worked its way back to the bottom of the channel it lived in for nearly three years. Any positive report and this could really take off sending it to challenge the $1Trillion club. A failure and the stock will likely test the 200D.


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