Amazon goes down After Missing on Revenue
Amazon (NASDAQ) shares fell more than 5% in after-hours trading following the release of its second-quarter report, which missed analysts’ revenue projections despite exceeding estimated profits.
In the second quarter of 2024, the company led by Andy Jassy reported total revenue of $147.977 billion, representing a 10.1% year-over-year increase compared to the same period last year. However, this result fell short of the $148.680 billion expected by analysts at Investing.com.
Regarding net income, Amazon reported $13.485 billion for the period from April to June, nearly doubling the $6.750 billion recorded in the same period last year. This translated to earnings per share (EPS) of $1.26, surpassing the $1.03 projected by analysts.
Particularly noteworthy was its cloud computing division, AWS, which saw a 19% increase in sales compared to the second quarter of 2023, reaching $26.3 billion. This figure slightly exceeded the $26 billion expected by analysts.
“We continue to make progress on many dimensions, but perhaps none more than the continued acceleration of AWS growth,” stated Andy Jassy, Amazon’s President and CEO.
In its guidance for the third quarter, Amazon projects net sales to be between $154 billion and $158.5 billion, or an 8% to 11% growth compared to the third quarter of 2023. This guidance anticipates an unfavorable impact of approximately 90 basis points from exchange rates.
The projections are somewhat disappointing compared to the $158.2 billion expected by analysts at Investing.com for the next quarter, as the company would need to achieve revenue at the higher end of its projections to meet current expectations.
Amazon also expects operating income to be between $11.5 billion and $15 billion, compared to $11.2 billion in the third quarter of last year.
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