Amazon's second quarter results fell shy of analysts' forecasts by a dollar a share.
Amazon's second quarter earnings fell well short of Wall Street's expectations.
Earnings missed analysts' forecasts by more than a dollar a share.
Investors sold the stock on the news. In recent trading after the bell, Amazon's stock was down $22.45 a share, or more than 2%, to $1,023.55.
The company reported on Thursday:
- EPS (GAAP) of 40 cents a share. Wall Street was expecting $1.42 a share, according to Bloomberg. In the year-ago period, Amazon earned $1.78 a share.
- Revenues of $38 billion. Analysts were expecting $37.2 billion. Amazon posted sales of $30.4 billion in the second quarter last year.
- Guidance: For the third quarter, Amazon expects to post revenue of between $39.25 billion and $41.75 billion. It expects its operating results to range from an operating loss of $400 million to an operating profit of $300 million. Prior to Amazon's report, Wall Street was forecasting that Amazon would earn $1.13 a share on $39.97 billion in sales in the period.
The company's sales were boosted by results from its services business, most notably its AWS cloud computing business. Compared with the year-ago period, AWS' revenue was up 42% to $4.1 billion. Amazon's overall service revenues also rose 42% to $13.2 billion. The company's total revenue grew 25%.
But rapidly rising expenses weighed heavily on Amazon's bottom line. Marketing costs jumped 44% from the second quarter last year to $2.2 billion. Amazon's spending on technology and content jumped 43% to $5.5 billion over the same period. Its fulfillment costs swelled 33% to $5.2 billion.
We'll be updating the story as results cross the wire. Click here for the latest updates on Amazon's Q2 results.
Amazon's second quarter results fell shy of analysts' forecasts by a dollar a share. Read Full Story
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