Amazon.com Inc. (NASDAQ: AMZN) shares fell back 2% in after-hours trading after spiking 10% following the company posting a 9% first-quarter gain in revenue and an 11% gain in North American sales.
Net sales increased to $127.4 billion in the first quarter, compared with $116.4 billion in the first quarter of 2022 and about $3 billion higher than analysts’ estimates. North America segment sales increased to $76.9 billion.
The company also issued second-quarter guidance, with net sales to come in between $127 billion and $133 billion, about 5% to 10% higher than in the 2022 quarter. Operating income is expected to be between $2 billion and $5.5 billion, compared with $3.3 billion in the second quarter of 2022.
Operating income increased to $4.8 billion in the first quarter, compared with $3.7 billion in the first quarter of 2022. North America segment operating income was $900 million, compared with an operating loss of $1.6 billion in the first quarter of 2022.
Net income was $3.2 billion in the first quarter, or 31 cents per diluted share, compared with a net loss of $3.8 billion, or 38 cents per diluted share, in the first quarter of 2022. Analysts’ median estimates were 21 cents a share.
First-quarter 2023 net income includes a pretax valuation loss of $500 million included in nonoperating expenses from the common stock investment in Rivian Automotive Inc., (NASDAQ: RIVN) compared to a pretax valuation loss of $7.6 billion from the investment in the first quarter of 2022.
Amazon shares, which were up strongly in the regular reading session, jumped in after-hours trading by more than 9% before pulling back into negative territory.
Supply chain inflation continued to moderate, with rates, fuel and labor stresses easing, the company noted. Modifications to its distribution network will result in the fastest delivery times in its history in 2023, CEO Andy Jassy told analysts.
Shipping costs in the quarter came in at $19.3 billion, a 2% year-on-year gain and a sign of the impact of reduced expense across the supply chain.
There were no questions or comments on the analyst call on the impact of a possible strike by the Teamsters union against UPS Inc. (NYSE: UPS) and its impact on Amazon’s shipping volumes. Amazon remains UPS’ largest individual customer, though the companies have lessened their dependence on each other over many months.