CEO of Amazon.com Inc. Jeff Bezos promised to spend the expected profit amid a huge acceleration of sales related to the COVID-19 pandemic, but sales grew so fast that he in return received record profits.
Thursday afternoon earnings in the second quarter were $ 5.2 billion, or $ 10.30 per share, almost doubling from $ 5.22 per share a year ago to a new quarterly record amid a huge increase in earnings. Amazon reported sales of $ 88.9 billion, up 40 percent from $ 63.4 billion a year earlier, well ahead of Amazon̵
Three months ago, Bezos said he expects to spend billions on expected operating profits, which flood in when Americans take refuge on the spot due to a coronavirus pandemic buy more goods online and businesses spend more money on cloud computing to support homeworkers. “If you own shares in Amazon, you can take a seat because we don’t think about small ones,” Bezos said in May.
However, shareholders did not run away. Instead, Amazon shares continued to operate at record highs, gaining more than 24% over the past three months and putting the company’s market capitalization above $ 1.5 trillion. Shares rose more than 4% during the early trading on Thursday, immediately after the results were announced.
“It was another extremely unusual quarter, and I can’t be more proud and grateful to our employees around the world,” Bezos said in a statement Thursday. “As expected, we spent more than $ 4 billion on additional costs related to COVID-19 in the quarter to help workers secure and deliver products to customers in high demand at the moment – purchasing personal protective equipment, increasing the cleanliness of our premises. , following new paths to safety, adding new family care benefits and paying a special bonus of more than $ 500 million to employees and service providers. ”
Achievements in Amazon’s core business show why investors follow Amazon, and more are joining them. The company said its e-commerce grew 47.8% year-over-year to $ 45.9 billion from $ 31.05 billion, while analysts had expected $ 39.89 billion. In North America, net sales on the Internet and in Amazon’s physical stores, such as its Whole Foods Markets, rose to $ 55.44 billion from $ 38.65 billion a year ago, while overseas sales rose to $ 22.67 billion from $ 16.67 billion a year ago. $ 37 billion.
Unit sales, which track actual physical orders from Amazon, jumped 57% in the quarter, up sharply from 18% growth in the quarter last year. In a conference call on Thursday afternoon, Chief Financial Officer Brian Olsawski noted that online grocery sales in the quarter tripled, and video streaming worldwide doubled compared to a year ago. However, in physical stores Amazon there is a decrease of 13%.
Amazon Web Services, a cloud computing company, rose to $ 10.8 billion from $ 8.38 billion, while analysts expected an average of $ 11 billion. As always, AWS was the largest revenue factor for Amazon, bringing in operating income of $ 3.36 billion, while Amazon reported total operating income of $ 5.84 billion.
Even before the pandemic, Amazon was spending money to increase its logistics operations to speed up the delivery of its Prime subscription services to customers, and COVID-19 pushed this line of costs to hyperdrive. With 1 million employees in Amazon now, Bezos said he was scheduled to testify about the antitrust hearing Wednesday before a congressional subcommittee, although because many are still listed as temporary, Amazon reported that number as 876,800 on Thursday.
“Our total number of full-time and seasonal employees now exceeds 1 million,” Olsavsky confirmed in a prepared speech on Thursday.
Amazon said it expected revenue to be between $ 87 billion and $ 93 billion in the third quarter, and learned from previous instructions to expect a profit, forecasting operating income of $ 2 billion to $ 5 billion, even if it is $ 2 billion. costs associated with COVID- 19. Amazon typically sells its “Prime Days” in the third quarter, but Olsavsky said in his conference on Thursday that Prime Minister’s Day will now be scheduled for the fourth quarter in all areas except India, where it will take place in August.