Amazon.com Inc (NASDAQ: AMZN) said on Thursday its sales continued to grow in the fiscal second quarter but at a slower pace as the U.S. government eased COVID-19 restrictions that enabled bricks-and-mortar stores to reopen.
Amazon earned $15.12 per share in the second quarter versus the year-ago figure of $10.30 per share. Its sales printed at $113.1 billion – an increase from $88.9 billion last year. According to FactSet, experts had forecast a higher $115.4 billion of sales in the recent quarter and $12.28 of EPS.
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The eCommerce giant’s Q2 results include sales from its annual Prime Day.
Much like Google and Facebook, Amazon benefitted from a surge in digital advertising that fuelled an 83% annualised growth in its “other†revenue to $7.92 billion. Amazon Web Services noted a 37% year over year increase in sales to beat Wall Street estimates.
According to Amazon, its cloud-computing segment made up roughly 60% of its total operating income in the recent quarter.
Amazon warned that sales growth will continue to decline in the future. For the fiscal third quarter, it forecasts up to $112 billion of sales and $2.5 billion to $6.0 billion of operating income. In comparison, analysts are calling for $119.3 billion of net sales and $8.24 billion of operating income.
The earnings report comes a month after Bloomberg said Amazon could be forced to divest its logistics assets.
Commenting on the earnings report on Thursday, New York Times’ Ed Lee said on CNBC’s “Closing Bellâ€:
“AWS did really well, and that’s where the new CEO comes from. But with the core business, eCommerce, you have to question is there a certain saturation point they’re hitting in North America?â€
Amazon’s eCommerce sales jumped 22% only despite the boost from Prime Day. Shares of the company tanked more than 5% in after-hours trading.
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