Amazon Announced the Blockbuster Quarter

Amazon.com, Inc. (NASDAQ: AMZN) shares up over 2% on Thursday after market close, as the company posted earnings per share of $1.78 sweeping consensus estimates of $1.11, along with revenues at $30.4 billion beating $29.55 billion. Amazon says Prime Day, which was not included in quarter, was a huge success, with worldwide orders up as much as 60% compared to last year’s Prime Day.

“It’s been a busy few months for Amazon around the world, and particularly in India — where we launched a new AWS Region, introduced Prime with unlimited free shipping, and announced that Prime Video is coming soon, offering Prime members in India exclusive access to Amazon Original Series and Movies — including original content featuring top Indian creators and talent,” said Jeff Bezos, founder and CEO of Amazon.com. “The team in India is inventing at a torrid pace, and we’re very grateful to our Indian customers for their welcoming response.”

Amazon appears finally to be delivering on a long term hope from investors of consistent profitability. The Seattle based company hadn’t had five consecutive profitable quarters since 2012 as it pumped much of its sales back into product and infrastructure development, including massive suburban warehouses to feed customers’ appetites.

For the next quarter guidance, Amazon outlook net sales to be range between $31.0 billion and $33.5 billion, or to be grow between 22% and 32% compared with the same quarter last year. Operating income is expected to be range between $50 million and $650 million, compared with $406 million last year.

Amazon dominates e-commerce in the U.S. with its $99 Amazon Prime annual subscription, which includes delivery discounts, music and video streaming and photo storage that keep shoppers engaged with the company. The company continues to invest in logistics to set the pace on fast delivery, offering to get tens of thousands of items to customers in as little as an hour in many cities. The fast-growing and profitable cloud computing division Amazon Web Services has reinvigorated investors, allaying concerns about razor-thin margins from e-commerce sales and helping make CEO Jeff Bezos the fourth-richest man in the world.

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