Amazon.com Inc. said it expects to spend its anticipated $4 billion second-quarter profits on coronavirus-related expenses, according to the company’s filing with the Securities and Exchange Commission (SEC).
The Washington-based eCommerce giant made the announcement in its first-quarter filing after the closing bell on Thursday (April 30).
“If you’re a shareowner in Amazon, you may want to take a seat, because we’re not thinking small,” said Amazon Founder and CEO Jeff Bezos in a statement. “Under normal circumstances, in this coming Q2, we’d expect to make some $4 billion or more in operating profit. But these aren’t normal circumstances.”
The pandemic’s impact on the business has been one of few bright spots in the stock market. Amazon shares closed at $2,474 and were up 4.27 percent on Thursday (April 30), Yahoo! Finance reported.
Amazon’s net sales increased 26 percent to $75.5 billion in the first quarter, compared with $59.7 billion for the same period last year. Operating cash flow increased 16 percent to $39.7 billion for the trailing 12 months, compared with $34.4 billion for the same period one year ago.
Free cash flow increased to $24.3 billion for the trailing 12 months, compared with $23 billion for the 12 months ending March 31, 2019. Amazon Web Services revenue reached $10.2 billion, the first time it exceeded $10 billion.
“From online shopping to AWS to Prime Video and Fire TV, the current crisis is demonstrating the adaptability and durability of Amazon’s business as never before, but it’s also the hardest time we’ve ever faced,” said Bezos. “We are inspired by all the essential workers we see doing their jobs – nurses and doctors, grocery store cashiers, police officers and our own extraordinary frontline employees. The service we provide has never been more critical, and the people doing the frontline work – our employees and all the contractors throughout our supply chain – are counting on us to keep them safe as they do that work. We’re not going to let them down.”