There were no dramatic announcements on Thursday in Amazon’s earnings report that could match the previous quarter’s news. In February, CEO Jeff Bezos announced that he would step down in mid-year, and Amazon Web Services CEO Andy Jessie would play his role. In the first quarter, Amazon has returned to what has been a recurring theme: making more and more money because online shopping to consumers is not as a luxury, but a way of life, in the midst of an epidemic.
Amazon reported that net income rose to $ 8.1 billion, or $ 16.09 per share, from $ 2.5 billion, or $ 5.09 per share a year earlier. Net sales increased 44% to $ 108.5 billion from $ 44.5 billion last year. According to Yahoo Finance, analysts forecast an average of $ 9.54 per share and earnings of about $ 104 billion in revenue. Amazon previously predicted net sales of between $ 100 billion to $ 106 billion.
Amazon is just the latest tech company to post a blow-out number –And Yesterday turned heads with its results – benefiting from the coronovirus-fuel lockdown that is now only beginning to decrease in the US. Amazon in particular benefited as more people took comfort in getting everything from diapers to groceries.
While its North America business has seen operating income of over $ 3.45 billion, its AWS cloud business continues to be the real money maker, pulling in $ 4.16 billion in operating income over the period.
In the last 12 months, the company has enjoyed a smooth run since overcoming logistic challenges that are the toughest at the end of the first quarter of 2020. Although sales increased in that quarter, Bezos warned investors that it could cost $ 4 billion to do the company’s work. With the epidemic in the following quarter, eating up its projected profits. This did not turn out to be the case as a companyEven after its large expenditure on coronovirus-related needs.
For the upcoming second quarter, Amazon forecast a decline of between $ 110 billion and $ 116 billion, with operating income between $ 110 billion and $ 8 billion. In a call with reporters, Amazon Chief Financial Officer Brian Olasavsky said that in June this year, Prime Day would be, back from its 2020 winter slot.
However, the mountains of cash Amazon generates only attract attention, and regulators are eyeing the Amazon. The company faces possible federal conflicting action and a labor investigation. Amazon avoided unionization in the first quarter of this year, as workers in a Bessemer, Alabama warehouse voted to reject union representation. Organizing efforts continue, and Amazon is under constant scrutiny from regulators, but the company’s US workforce is union-less.
On Wednesday, the company announced a wave of wage increases for its workers. There will be an hourly wage increase at the end of this year, raising hourly pay between 50 cents and $ 3 in May and June. Amazon has said that the company will cost around $ 1 billion. Olsavsky told reporters that increased wages make the opening of more sectors of the economy feel. He said that many of Amazon’s employees have come from those regions during the epidemic, and the company wants to remain competitive as more jobs become available.
In his annual letter to shareholders, Bezos said he wants Amazon to become the best employer on earth. The company has tracked efforts to reduce musculoskeletal disorders in its warehouses, and says its prevention and early management efforts are already reducing injuries, including such things as sprains and strains. The company is expanding its injury prevention training by 2025 with the goal of reducing “recordable incident rates” in half.
Allsvsky did not give a number when asked if a specific budget was tied to a broader effort to become the world’s best place to work, and emphasized that Amazon is already proud of that workplace Which provides for employees.
“There is still always work to do, especially on the security side,” he said.