Executive Summary

• Amazon reported 1Q18 EPS of $3.27, handily beating the $1.24 consensus estimate and up 121.4% year over year. Revenues were $51.04 billion, up 42.9% year over year and beating the consensus estimate of $49.92 billion.
• Amazon Web Services (AWS) and North America were the fastest-growing segments, growing by 48.6% and 46.4%, respectively. Growth in AWS accelerated from the prior quarter. International revenues grew by 34.5%.
• The company’s 2Q18 guidance calls for revenues of $51–$54 billion, whose midpoint is ahead of the consensus estimate of $52.22 billion, and for operating income of $1.1–$1.9 billion, whose midpoint is above the consensus estimate of $1.12 billion.