Amazon.com Inc. (NASDAQ: AMZN) reported its second quarter financial results and missed revenue estimates but surpassed earnings estimates by more than double analysts had projected.
For the second quarter, Amazon reported revenue of USD 52.9 Billion, increasing 39% year over year, but falling short of Thomson Reuters’ estimates of USD 53.41 Billion. The Company reported an EPS of USD 5.07, topping Thomson Reuters’ estimates of USD 2.50.
Amazon’s net income increased to USD 2.5 Billion in the quarter, compared to USD 197 Million in the same quarter last year. Amazon’s Chief Financial Officer Brian Olsavsky said in a conference call that the the Company’s cloud and advertising businesses were the big contributors.
Amazon’s other revenue, which is mostly its advertising revenue reported USD 2.2 Billion, increasing 132% year over year.
Amazon Web Services reported revenue of USD 6.1 Billion, up USD 4.1 Billion a year ago. The segment also reported operating income of USD 1.64 Billion. Analysts had expected AWS to report revenue of USD 6.0 Billion on profits of USD 1.47 Billion. AWS added on two new customers in the quarter as well: Ryanair and Epic Games.
Amazon had its fourth annual Prime Day, which is its biggest global shopping event. Amazon members purchased more than 100 million products. The top products included Amazon’s Fire TV Stick and Echo Dot.
Amazon announced the Fire TV Cube, a 4K Ultra HD streaming media player with Alexa enabled abilities. The Company also launched its Echo and Alexa in France, additionally, launching its Echo Spot in India and Japan. Amazon says Echo and Alexa will launch in Italy, Mexico and Spain later this year.
“We want customers to be able to use Alexa wherever they are,” said Jeff Bezos, Amazon Founder and Chief Executive Officer. “There are now tens of thousands of developers across more than 150 countries building new devices using the Alexa Voice Service, and the number of Alexa-enabled devices has more than tripled in the past year. Our partners are creating a wide variety of new Alexa-enabled devices and experiences.”
For the third quarter, Amazon forecasts revenue to be between USD 54.0 Billion and USD 57.5 Billion or to grow 23% and 31% year over year. Operating income is expected to be between USD 1.4 Billion and USD 2.4 Billion. Analysts are forecasting operating income of USD 1.25 Billion on sales of USD 58.07 Billion.