Amazon Sales Surge, but Profit Dips

Amazon ( AMZN), which released its second-quarter results after market close, is enjoying strong sales, but saw its profit slide as the economy slowly gets back on its feet.

The Web retailer's revenue came in at $4.65 billion, a 14% increase on the same period last year, but just below Wall Street's estimate. Analysts had expected second-quarter sales of $4.69 billion.

Investors who'd been eagerly awaiting Amazon's results to gauge the health of high-profile tech stocks will be relieved to see the retailer's sales figures.

Despite its revenue hike, however, Amazon's profit took a hit. The Seattle, Wash.-based firm earned 32 cents a share on net income of $142 million, down from 37 cents a share and $157 million in the year-ago quarter. Analysts surveyed by Thomson Financial had expected earnings of 32 cents a share.

Even taking the profit slump into account, the results show Amazon's ability to largely breezed through the tough economic conditions of recent quarters.

"We're staying heads down focused on providing customers low prices, vast selection, and fast delivery," said Jeff Bezos, the Amazon CEO, in a statement. The firm's customers saved more than $900 million in free shipping during the quarter, he added.

The Internet retail giant's results follow good numbers from eBay ( EBAY) and Yahoo! ( YHOO), which both posted decent quarterly figures earlier this week.

Amazon also issued bullish guidance, predicting third-quarter sales between $4.75 billion and $5.25 billion, at the high end of Wall Street's $4.92 billion estimate.

The company expects operating income between $120 million and $210 million, which includes $95 million for stock-based compensation and amortization.

Amazon shares slipped $7.27, or 7.74%, to $86.60 in extended trading.

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