Amazon (AMZN) is set to report Q1 results today after the close with a call to follow at 5:30pm ET.

The CapitalIQ consensus calls for a +92% yr/yr increase in non-GAAP EPS to $9.64 from $5.01 a year ago.

Revenue is expected to grow 39% yr/yr to $104.63 bln, current guidance is $100-106 bln. AMZN typically guides for revenue and operating income for the next quarter.

AMZN has previously guided to Q1 operating income of $3.0-6.5 bln but AMZN tends to be conservative with this metric.

Q1 operating income consensus is $6.12 bln while Q2 consensus is $6.92 bln.

Huge upside quarters from Fedex (FDX) and UPS (UPS) have raised expectations.

AWS will be watched. Though not a huge part in terms of total revenue (12% of 2020 revenue), AWS generates more operating income than AMZN's North America and International shopping segments combined. So, it's kind of a big deal.

AWS is a critical growth engine for Amazon. In Q4, AWS segment revenue rose 28% yr/yr to $12.74 bln (right in-line with +29% growth in Q3) with operating margin of 28.0% vs 26.1% in the year ago period. Last night, Microsoft's (MSFT) competing Azure saw revenue growth remain robust at +50% yr/yr, equal to its +50% yr/yr result in DecQ, but up from 48% growth in SepQ and 47% growth in JunQ.

TECHS:

This will be the first quarter without Jeff Bezos at the helm and expectations are high.

RESULTS:

Amazon beats by $6.24, beats on revs; guides Q2 revs above consensus

Reports Q1 (Mar) earnings of $15.79 per share, $6.24 better than the S&P Capital IQ Consensus of $9.55; revenues rose 43.8% year/year to $108.52 bln vs the $104.59 bln S&P Capital IQ Consensus.

Operating income rose 122% yr/yr to $8.87 bln vs $3.0-6.5 bln prior guidance.

AWS segment sales rose 32% yr/yr to $13.50 bln. This compares to AWS segment revenue growth of +28% in Q4 and +29% in Q3. AWS operating margin came in at 30.8% vs 30.1% last year.

Co issues upside guidance for Q2, sees Q2 revs of $110-116 bln vs. $107.58 bln S&P Capital IQ Consensus. Co guides to Q2 operating income of $4.5-8.0 bln vs $6.92 bln consensus.


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