Executive Summary

• Amazon reported 1Q17 EPS of $1.48, compared with $1.07 in the year-ago quarter and beating the $1.08 consensus estimate. Net sales were $35.7 billion, up 22.6% year over year and beating the $35.3 billion consensus estimate.
• Amazon Web Services (AWS) continued to be a strong business driver, with revenues up 42.7%. The segment contributed 89% of operating profit in the quarter.
• Guidance for 2Q17 is for revenues of $35.25–$37.75 billion, in line with consensus, and for operating income of $425 million–$1.075 billion, below consensus of $1.46 billion.