Why Amazon 'Crushed' This Quarter
Amazon reported an impressive quarter on Thursday.
The company reported second-quarter earnings of $10.30 per share on revenue of $88.91 billion, a 40% increase year over year.
Analysts were expecting the company to report earnings of $1.46 per share on revenue of $81.53 billion. However, Amazon's bottom line varies widely from quarter to quarter and analyst expectations for its profit are sometimes not that applicable.
The company said revenue at its e-commerce business rose 47.8% in the second quarter to $45.9 billion, higher than forecasts of $39.89 billion.
Amazon Web Services, the company’s cloud-computing division, reported revenue of $10.8 billion from $8.38 billion a year earlier. Operating income at the division was $3.36 billion in the period, up 58% from a year earlier.
“This was another highly unusual quarter, and I couldn’t be more proud of and grateful to our employees around the globe,” said Jeff Bezos, founder and CEO of Amazon, in a statement.
“As expected, we spent over $4 billion on incremental COVID-19-related costs in the quarter to help keep employees safe and deliver products to customers in this time of high demand," he continued.
From Ponsi Charts: Amazon Traders Should Watch This Level
For the third quarter, the company expects revenue to range between $87 billion and $93 billion. Analysts were expecting revenue of $86.3 billion in the quarter.
Jeff Marks discusses Amazon's quarter and his thoughts on it.
You can follow Katherine Ross on Twitter at @byKatherineRoss.
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