Amazon Shares Dip After-Hours as Second Quarter Outlook Misses Estimates

$Amazon.com(AMZN)$   shares fell in extended trading Thursday after the company provided a second quarter outlook for operating income that missed analysts estimates, overshadowing first quarter results that beat expectations.

The e-commerce giant that's also the leader in cloud services sees operating income reaching between $13 billion and $17.5 billion. The midpoint of that forecast missed Bloomberg consensus that called for $17.82 billion. Net sales could reach $159 billion to $164 billion compared with the average estimate of $161.42 billion. 

Amazon's guidance is "subject to substantial uncertainty," adding that its results could be affected by "changes in global economic and geopolitical conditions, tariff and trade policies, and customer demand and spending (including the impact of recessionary fears), inflation, interest rates," and regional labor market constraints among other factors, the company said in a press release. 

For the three months that ended March 31, the company said net sales rose 9% to $155.67 billion, surpassing analysts' estimates that called for $155.16 billion. Earnings rose almost 40% to $1.59 a share, beating consensus by 17%, according to data compiled by Bloomberg.

Sales at Amazon Web Services gained 17% to $29.27 billion in the first quarter compared with analysts' estimates of $29.36 billion. Advertising services sales rose 19% to $13.92 billion compared with $13.77 billion.  

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