July 24, 2015
Company Posts 20 Percent Growth in Net Sales
Amazon’s shares spiked 17 percent in after hours trading Thursday after the retail giant reported a $92 million profit or $0.19 per diluted share for its second quarter.
The company’s results surpassed Wall Street’s estimates and had investors grinning.
Amazon’s net sales increased 20 percent to $23.18 billion in the second quarter, up from the $19.34 billion it posted in the same quarter in 2014. Excluding the $1.39 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 27 percent.
Operating income, meanwhile, sat at $464 million in the second quarter, a significant difference over last year’s second-quarter operating loss of $15 million.
Amazon Web Services netted the firm $1.8 billion in sales in the second quarter, an increase of 80 percent from the $1 billion it made in the year-ago quarter.
“The teams at Amazon have been working hard for customers,” said CEO Jeff Bezos. “We unveiled Amazon Business, opened Amazon Mexico, launched Prime free same-day, rolled out our ninth Prime Now city, broke our Black Friday record with the first-ever Prime Day, received 11 Emmy nominations for Transparent, debuted six new kids pilots, brought Echo to general availability, introduced the Alexa Skills Kit and Alexa Voice Service, opened FBA Small and Light, continued to double down on our fastest growing geography — India, launched 350 significant AWS features and services so far this year (ahead of last year’s pace), introduced AWS Educate, and entered into agreements for new solar and wind farms — enough to exceed our 2016 goal of 40 percent renewable energy.”
Amazon is forecasting net sales for its third quarter to be between $23.3 billion and $25.5 billion, up anywhere from 13 percent to 24 percent compared to 2014. Operating income (loss), meanwhile, is expected to be between $480 million and $70 million, compared to $544 million in third quarter of 2014.
Jennifer Cowan is the Managing Editor for SiteProNews.