Amazon Delivers First-Quarter Results

Amazon shares soared after-hours trading following the company’s Q1 earnings report, which exceeded expectations in multiple areas. Key figures from the report, in comparison to Bloomberg analysts’ estimates, include:

  • Net sales: $127.36 billion (actual) vs. $124.7 billion (estimated)
  • EPS: 31 cents (actual) vs. 20 cents (estimated) 😲
  • Amazon Web Services (AWS) net sales: $21.35 billion (actual) vs. $21.03 billion (estimated)
  • Operating margin: 3.7% (actual) vs. 2.38% (estimated)
  • Q2 net sales guidance: $127-133 billion (actual) vs. $130.1 billion (estimated)

CEO Andy Jassy praised the company’s performance, highlighting improvements in fulfillment network costs and the fastest Prime delivery speeds expected in 2023. He attributed robust advertising growth to ongoing machine learning investments that enhance customer engagement and deliver strong results for brands. 🚛

Although Q1 AWS results relieved Amazon investors, Jassy expressed caution about the cloud business’s prospects in the current macro environment. He emphasized AWS’s long-term plans, focusing on building customer relationships, enabling cost savings, and leveraging technologies like Large Language Models and Generative AI. Jassy remains optimistic about AWS’s future growth. 🤖

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Scholastic Slumps On Book Weakness

Scholastic Corporation shareholders received another chapter of the company’s book. And unfortunately, they didn’t like what they read. ☚ī¸

The education and media company’s first-quarter loss widened, and revenues declined due to continued softness in the retail book market. An adjusted loss per share of $2.20 on revenues of $228.5 million missed analyst expectations of a $1.35 per share loss on $268.8 million in revenues.

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Polestar Loses Power On Earnings

Electric vehicle (EV) companies remain in focus as earnings season comes to an end. Today, we’re looking at Swedish automaker Polestar, which reported weaker-than-expected results.

An adjusted loss per share of $0.15 was 25% greater than last year, while revenues rose 16.30% YoY to $685.2 million. Its second-quarter deliveries rose 36% YoY to 15,765, bringing its first half of 2023 total to 27,841 vehicles. ⚡

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Sellers Hooked This Retailer Again

Home furnishing retailers across the spectrum have struggled in the current environment. We’ve heard from Big Lots at the low end and RH at the high end, both experiencing weakness due to inflation and housing market activity grinding to a halt. 🐌

Today sellers got their hooks into another retailer, Hooker Furnishings Corp., which reported weak second-quarter results. 

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Nvidia’s New Highs

Expectations for Nvidia’s earnings results were extremely high going in, with its market capitalization topping $1 trillion. And yet, somehow, the company continues to deliver. 😮

The semiconductor giant’s second-quarter results blew away estimates. Adjusted earnings per share of $2.70 on revenues of $13.51 topped the expected $2.09 and $11.22 billion.

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