Amazon stock up 14% after better-than-expected 1Q15 earnings
Amazon (AMZN) announced its 1Q15 earnings on April 23, beating its own midpoint estimates for both revenues and operating income. Amazon YoY (year-over-year) revenue growth was 15%, at the high range of its own estimates that put growth at between 6% and 16%. Its GAAP (generally accepted accounting principles) operating income came in at $255 million, way higher than the range of -$450 million to $50 million that the company had guided for earlier.
Amazon’s 1Q15 revenue growth rate is impressive considering that the strong US dollar (UUP) shaved 7% off the total. Investors cheered Amazon’s results and the stock got a 14% boost on the day earnings were announced.
Currency headwinds have impacted the whole large-cap tech sector
Amazon now expects its revenue to grow by a YoY rate of between 7% and 18% in 2Q15, as the chart above shows. Amazon expects currency headwinds to once again affect revenue growth, by up to 7.5% in 2Q15 .
Currency issues continue to impact the whole large-cap tech sector. eBay (EBAY) and Facebook (FB) announced their 1Q15 earnings on April 22, and both companies noted that currency headwinds had a negative impact on their YoY revenue growth—amounting to 5% and 7%, respectively. Similarly, Google (GOOG) announced its earnings on April 23 and reported a 5% currency impact on its revenue growth.