Amazon Beats Analysts’ Expectations by Reporting a Strong Q1 Performance

After reporting a net loss of $57m in Q1, 2015, Amazon is right on the money this year. The company moved beyond analyst expectations in all areas by reporting a whopping $513m profit margin in Q1 sales this year.

The company’s net profit is largely due to the sale of its own manufactured products like Kindle e-reader and Fire Tablet computers. The company reported $1.07 earnings per share on more than $29 billion in net sales. In the process, it beat analysts’ expectations of 58 cents per share on net revenue of $27.98 billion in Q1, 2016.

This is a refreshing change from the forgettable Q1 performance last year, where the company reported a net loss of $57 million, or 12 cents a share on $22.7 billion in net sales.

Let’s see what Jeff Bezos, founder and CEO of Amazon, has to say about the company’s strong Q1, 2016 performance.

Amazon devices are the top selling products on Amazon, and customers purchased more than twice as many Fire tablets than first quarter last year,” said Bezos in a statement. “Earlier this week, the $39 Fire TV Stick became the first product ever — from any manufacturer — to pass 100,000 customer reviews, including over 62,000 5 star reviews, also more than any other product ever sold on Amazon. Echo too is off to an incredible start, and we can’t yet manage to keep it in stock despite all efforts. We’re building premium products at non-premium prices, and we’re thrilled so many customers are responding to our approach.

The company has every reason to smile so far as not only its gadgets but its cloud business and web services are driving net revenue profit for the company. Talking about net revenue gains, Amazon’s Web Services (AWS) segment attracted an overall gain of 201% year-over-year by reporting a $604 million net income in Q1, this year on revenues of $2.57 billion; thus beating analysts’ expectations of $2.53 billion.

The strong Q1 performance helped the company increase its trading share value by 12%, with the company’s share value reportedly registering a strong growth of $6.1 billion in less than 20 minutes.

After a strong Q1 performance, the company’s expecting a net revenue sales surge in the range of $28 billion and $30.5 billion, a year over year increase of 21% to 32% in the second quarter of 2016.