Amazon.com, Inc. AMZN reported late Thursday a 17 percent increase in first quarter net sales to $59.7 billion, in line with analysts' estimates. Operating income rose to $4.4 billion from $1.9 billion, while net income climbed to $3.6 billion from $1.6 billion, resulting in a more than doubling of earnings per diluted share to $7.09 a share.
Operating cash flow rose 89 percent to $34 billion, Amazon said. The figure tracks results for the 12-month period ending March 31, 2019.
Fulfillment costs rose to $8.6 billion from $7.7 billion, Amazon said. Shipping costs hit $7.32 billion, a 21 percent year-over-year increase, Amazon said. Shipping cost increases have been in the low-20 percent range for the past three quarters. By contrast, shipping expenses in the fourth quarter of 2017 and in the first two quarters of 2018 rose by 31 percent, 38 percent and 31 percent, respectively, over each prior-year quarter.
That the pace of shipping expense growth has moderated over the past six quarters while volumes have substantially increased during the period may indicate that the company is deriving some savings by moving a larger proportion of shipments on its own equipment rather than outsourcing the transportation. It may also reflect that the company has, in general, become more proficient in moving goods.
It is estimated that Amazon transports between 10 to 12 percent of its goods, a ratio that is expected to rise as it brings on more aircraft and trucks, and increases its utilization of the nation's rail network.
Amazon executives will hold an analysts call at 5:30 p.m. EDT to discuss the results.
Image sourced from Pixabay
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
