Amazon’s Q1-2023 Results Beat Estimates — Earnings Breakdown
Amazon (NASDAQ:AMZN) just released its Q1-2023 earnings results, displaying robust growth and a bright outlook for the company. Here are the main highlights from the report:
Q1 net sales saw a 9% increase, reaching $127.4 billion (estimates were $124.6 billion), up from $116.4 billion in Q1 2022. When excluding the $2.4 billion unfavorable impact from foreign exchange rates, net sales experienced an 11% YoY growth.
Sales in the North America segment climbed 11% YoY to $76.9 billion, whereas International segment sales rose 1% YoY to $29.1 billion (or 9% without factoring in foreign exchange rate fluctuations).
Amazon Web Services (AWS) segment sales witnessed a 16% YoY growth, hitting $21.4 billion.
Operating income jumped to $4.8 billion in Q1, compared to $3.7 billion in Q1 2022, which includes roughly $0.5 billion of charges related to estimated severance costs.
Q1 net income reached $3.2 billion, or $0.31 per diluted share (estimates were $0.21/share), as opposed to a net loss of $3.8 billion, or $0.38 per diluted share, in Q1 2022.
Operating cash flow saw a 38% increase to $54.3 billion for the trailing twelve months, in comparison to $39.3 billion for the same period ended March 31, 2022.
Free cash flow improved to an outflow of $3.3 billion for the trailing twelve months, as opposed to an outflow of $18.6 billion for the same period ended March 31, 2022.
Q2-2023 Projections
For Q2 2023, Amazon expects sales to range between $127.0 billion and $133.0 billion, signaling growth of 5% to 10% compared to Q2 2022. This guidance considers an estimated unfavorable impact of about 30 basis points resulting from foreign exchange rates. The company projects operating income to fall between $2.0 billion and $5.5 billion, in contrast to $3.3 billion in Q2 2022.
In summary, Amazon's Q1 earnings report showcases the company's capacity to sustain impressive growth across its various business segments, including AWS, North America, and International sales. With a positive outlook for Q2 2023, Amazon continues to demonstrate its adaptability in an increasingly challenging market environment.
