Earnings: Amazon 1Q Profit More Than Doubles

Amazon.com (Nasdaq:AMZN) reported that its 1Q net income leaped 115 percent to $111 million, while sales rose 32 percent to $3.02 billion versus $2.28 billion in 1Q06. Operating income increased 38 percent to $145 million during the quarter, compared with $106 million the previous year.
The company attributed much of the quarter’s good fortune to growth associated with Amazon Prime, its two-year old membership program. It also noted other contributors to its success during the period:

— Amazon Unbox on TiVo became available to more than 1.5 million broadband-ready TiVo boxes, offering subscribers another way to download thousands of movies and TV shows.
— It also launched specialty e-commerce channels across Asia and Europe.
— Looking forward, Amazon expects 2Q net sales to range between $2.70 billion and $2.85 billion, or to grow between 26 percent and 33 percent compared with 2Q06. Its forecast for that quarter’s operating income call for it to land within $65 million and $105 million, or grow between 39 percent and 125 percent compared with the corresponding period the year before.
— For the full year, it anticipates net sales growth of 25- to 31 percent, coming in between $13.40 billion and $14.00 billion. Earnings release | Webcast

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