NASDAQ$AMZN

Amazon.com Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Amazon's Q1 2020 results were impacted by increased net sales but decreased operating and net income compared to Q1 2019.

Amazon's first quarter 2020 results showed a 26% increase in net sales to $75.5 billion, but operating income decreased to $4.0 billion and net income decreased to $2.5 billion, or $5.01 per diluted share, compared to the previous year. The company is investing heavily in COVID-19 related expenses to protect employees and serve customers.

  • Net sales increased by 26% to $75.5 billion, driven by increased customer demand.
  • Operating income decreased to $4.0 billion, impacted by COVID-19 related expenses.
  • Net income decreased to $2.5 billion, or $5.01 per diluted share, compared to $3.6 billion, or $7.09 per diluted share, in Q1 2019.
  • Amazon plans to spend approximately $4 billion on COVID-19 related expenses in Q2 2020 to ensure employee safety and customer service.

Headline financials

Total Revenue

$75.5B

Previous: $59.7B+26.4%
EPS (adj)

$0.25

Previous: $0.35-28.6%
Free Cash Flow

$2.54B

Previous: $3.56B-28.8%
Net Income

$2.54B

Previous: $3.56B-28.8%
Operating Income

$3.99B

Previous: $4.42B-9.8%
Gross Profit

$31.2B

Previous: $25.8B+21.0%
Cash & Equivalents

$27.2B

Previous: $23.1B+17.7%
Total Assets

$221B

Previous: $178B+24.2%

Revenue & EPS history

Amazon · Revenue · Quarterly

$75.5B

Q1 2020+26.4%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Amazon · $75.5B total across 3 segments · Q1 2020

  • North America
    $46.1B+28.8%
  • International
    $19.1B+18.0%
  • AWS
    $10.2B+32.8%

Forward guidance

Amazon expects net sales between $75.0 billion and $81.0 billion, representing growth between 18% and 28% compared to Q2 2019. Operating income (loss) is expected to be between $(1.5) billion and $1.5 billion, compared with $3.1 billion in Q2 2019, which includes approximately $4.0 billion of costs related to COVID-19.

Tailwinds

  • Net sales are expected to grow between 18% and 28% compared to second quarter 2019.
  • Guidance anticipates an unfavorable impact of approximately 70 basis points from foreign exchange rates.
  • Continued investment in employee safety measures.
  • Prioritizing stocking and delivery of essential items.
  • AWS supporting critical research and solutions.

Headwinds

  • Operating income (loss) is expected to be between $(1.5) billion and $1.5 billion, compared with $3.1 billion in second quarter 2019.
  • Guidance assumes approximately $4.0 billion of costs related to COVID-19.
  • Uncertainty regarding the duration and spread of the pandemic.
  • Potential impact on global and regional economies and economic activity.
  • Potential effects on suppliers, creditors, and third-party sellers.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.7%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+0.5%

Avg return

30 days after

47%

31 / 66 earnings

Positive

+18.4%

Q1 2012

Best reaction

-10.6%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%+4.0%+2.9%
Q4 2025-5.6%-8.4%-4.3%
Q3 2025+1.9%+12.3%+4.6%
Q2 2025-6.2%-5.0%-2.2%
Q1 2025-0.2%-0.8%+7.8%
Q4 2024-4.1%-4.1%-16.6%
Q3 2024+2.7%+3.5%+7.9%
Q2 2024-10.2%-13.4%-4.5%
Q1 2024-1.1%+2.9%-0.9%
Q4 2023+10.7%+9.0%+14.8%
Q3 2023+5.2%+9.6%+20.9%
Q2 2023+8.9%+9.1%+7.7%
Q1 2023+0.4%-1.3%+14.4%
Q4 2022-1.7%-2.9%-9.7%
Q3 2022-10.6%-16.3%-19.2%
Q2 2022+11.6%+10.9%+8.1%
Q1 2022-10.1%-10.1%-16.7%
Q4 2021+4.7%+7.2%-3.3%
Q3 2021-0.6%-2.4%+3.3%
Q2 2021-8.3%-7.3%-7.7%
Q1 2021+0.3%-4.2%-6.8%
Q4 2020-0.9%+0.3%-10.9%
Q3 2020-4.0%-3.6%+1.0%
Q2 2020+4.3%+3.5%+12.1%
Q1 2020-3.7%-2.3%+2.9%
Q4 2019+8.1%+10.3%+1.4%
Q3 2019-0.0%+0.0%-0.9%
Q2 2019-2.9%-5.1%-12.6%
Q1 2019+2.6%+1.3%-4.1%
Q4 2018-2.6%-0.7%+0.1%
Q3 2018-1.3%-8.0%-9.7%
Q2 2018-2.5%-4.6%+2.2%
Q1 2018+7.7%+8.4%+10.3%
Q4 2017-1.4%-0.6%+3.4%
Q3 2017+13.2%+13.6%+21.9%
Q2 2017-3.1%-5.4%-10.2%
Q1 2017+1.7%+4.1%+9.5%
Q4 2016-2.7%-2.4%+2.1%
Q3 2016-5.6%-4.5%-5.1%
Q2 2016+3.0%+3.2%+4.4%
Q1 2016+8.7%
Q4 2015+0.6%
Q3 2015+7.8%
Q2 2015+8.4%
Q1 2015+14.2%
Q4 2014+16.6%
Q3 2014-8.3%
Q2 2014-9.5%
Q1 2014-6.4%
Q4 2013-6.7%
Q3 2013+11.2%
Q2 2013+4.3%
Q1 2013-5.2%
Q4 2012-1.2%
Q3 2012+4.3%
Q2 2012+9.4%
Q1 2012+18.4%
Q4 2011-6.5%
Q3 2011-9.0%
Q2 2011+4.6%
Q1 2011+6.9%
Q4 2010-8.0%
Q3 2010+2.4%
Q2 2010-1.3%
Q1 2010-1.9%
Q2 2009-10.2%

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