Excellent First Quarter for Amazon
In the first quarter of 2020, Amazon made a huge revenue jump on a yearly basis, but the net income was down. Net sales increased 26% to $75,5 billion, compared with $59.7 billion in the same period last year. Excluding the $387 million impact from changes in foreign exchange rates throughout the quarter, net sales increased 27%.
Operating income decreased from $4,4 to $4.0 billion, while net income fell to $2.5 billion, or $5.01 per diluted share, compared with $3.6 billion, or $7.09 per diluted share, in first quarter 2019. Operating cash flow increased 16% to $39.7 billion, while free cash flow grew to $24.3 billion.
“From online shopping to AWS to Prime Video and Fire TV, the current crisis is demonstrating the adaptability and durability of Amazon’s business as never before, but it’s also the hardest time we’ve ever faced,” said Jeff Bezos, Amazon founder and CEO.
“Under normal circumstances, in this coming Q2, we’d expect to make some $4 billion or more in operating profit. But these aren’t normal circumstances. Instead, we expect to spend the entirety of that $4 billion, and perhaps a bit more, on COVID-related expenses getting products to customers and keeping employees safe,” added Bezos.
The company expects that in the second quarter net sales will be between $75.0 and $81.0 billion, or to grow between 18% and 28% compared with 2019. Operating income is expected to be between $1.5 loss and $1.5 billion gain.