Amazon.com Q2 Results Trump Street; Shares Up 5%

Amazon.com Inc. (AMZN) Thursday reported a second-quarter profit that doubled from a year ago, driven by revenues growth. Shares of the online retail giant gained nearly 5% after both earnings and revenues trumped estimates.

Seattle, Washington-based Amazon’s second-quarter rose to $5.24 billion or $10.30 per share from $2.63 billion or $5.22 per share last year. On average, 39 analysts polled by Thomson Reuters expected earnings of $1.46 per share for the quarter.

Amazon’s sales for the quarter increased 40% to $88.91 billion from $63.40 billion last year. Analysts had a consensus revenue estimate of $81.53 billion for the quarter.

Sales from North America jumped 43 percent to $55.44 billion from $38.65 billion last year, while international sales rose 38 percent to $22.67 billion from $16.37 billion. Meanwhile, revenues of Amazon Web Services, Amazon’s cloud service division, jumped 29 percent to $10.81 billion from $8.38 billion.

Looking forward to the third quarter, the company expects sales of $87.0 billion to $93.0 billion. Analysts currently estimate revenues of $86.29 billion.

Amazon said it expects to spend more than $2 billion during the third quarter on additional coronavirus-related measures, including procuring personal protective equipment, deep cleaning its facilities and wage increases for employees, among other things. Last quarter, Amazon said it would spend all of its estimated $4 billion profit between April and June on similar efforts.

“This was another highly unusual quarter, and I couldn’t be more proud of and grateful to our employees around the globe,” Amazon CEO Jeff Bezos said in the release. “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.”

AMZN closed Thursday’s trading at $3,051.88, up $18.35 or 0.60%, on the Nasdaq. The stock further gained $148.12 or 4.85% in the after-hours trading.

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