Amazon sets third straight record profit, stock barely moves
Amazon just reported its second quarter earnings after the bell on Thursday afternoon.
It's a beat across the board, with Amazon setting another record-high quarterly profit for the third consecutive quarter.
But Amazon shares dipped slightly in after hours before bouncing back up ~2% as third quarter operating income guidance came in lower than street estimates.
Here are the most important numbers:
- Q2 earnings per share (GAAP): $1.78 per share vs. $1.11 per share estimated
- Q2 Revenue: $30.4 billion vs. $29.56 billion estimated (up 31% year-over-year)
- AWS revenue: $2.88 billion vs. $1.82 billion last year, up 58% year-over-year
- Operating cash flow: $12.7 billion, up 42% from $9.0 billion last year
Amazon had $857 million in net profit, its fifth straight profitable quarter, an anomaly for a company known for investing in growth over profits. Operating income came in at $1.3 billion, nearly triple last year's $464 million.
When asked if this a sign of Amazon's investment opportunities drying up, Amazon CFO Brian Olsavsky said that's not the case, stressing its investments in video content, fulfillment centers, and AWS for the remainder of the year. Instead, he said it's an indication of the company's "operating efficiency."
"I would not take our financial results as an indication of we’re running out of investment opportunities in any way, shape, or form," he said during a press call.
Amazon gave third quarter revenue guidance in the range of $31 billion to $33.5 billion, close to street estimates of $31.6 billion.
Amazon Web Services continues to be Amazon's fastest-growing and most profitable business. Its revenue grew another 58% year-over-year to $2.88 billion, while posting $718 million in operating income, which is bigger than the $702 operating income its North America retail business recorded.
Amazon continues to see quarterly profits.Amazon
In its earnings release, Amazon CEO Jeff Bezos focused on the company's expansion into India, a market it committed to invest $5 billion last quarter. “The team in India is inventing at a torrid pace, and we’re very grateful to our Indian customers for their welcoming response,” he said in a statement.
Amazon didn't share anything new about its annual Prime Day, sticking to previously reported numbers of 60% orders growth compared to last year's event. It also said that third party sales on Prime Day nearly tripled while Prime members saved over twice as much on deals.
We'll be updating this post with info from the earnings call or click here for the latest updates.
Amazon shares have been on an absolute tear lately, jumping over 50% since February. Its soaring stock price has made Amazon the fifth most valuable company in the US at one point, and turned its CEO Jeff Bezos into the world's third richest man.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
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