Amazon beats Street on Q2 net sales, misses on EPS
Amazon exceeded Wall Street Q2 expectations with an impressive 20% growth in net sales, but earnings per share (EPS) fell short of projections.
The e-tail titan saw net sales rise 20% to $63.4 billion in second quarter fiscal 2019, compared with $52.9 billion in second quarter fiscal 2018. This figure was about 1% ahead of the $62.6 billion Wall Street consensus.
Net income increased slightly to $2.6 billion in the second quarter, or $5.22 per diluted share, compared with net income of $2.5 billion, or $5.07 per diluted share, in second quarter 2018. EPS missed Wall Street consensus of $5.58 by $0.36.
Looking ahead to the third quarter, Amazon expects net sales to be between $66 billion and $70 billion, or to grow between 17% and 24% compared with third quarter 2018. This guidance anticipates an unfavorable impact of approximately three percentage points from foreign exchange rates.
“Customers are responding to Prime’s move to one-day delivery — we’ve received a lot of positive feedback and seen accelerating sales growth,” said Jeff Bezos, Amazon founder and CEO. “Free one-day delivery is now available to Prime members on more than ten million items, and we’re just getting started. A big thank you to the team for continuing to make life easier for customers.”
Amazon also cited impressive continuing growth of Alexa-compatible smart home devices during the quarter, reaching more than 60,000 products from over 7,400 unique brands. There are also now hundreds of third-party devices with Alexa built-in, such as TVs, thermostats, headphones, and vehicles.
The e-tail titan saw net sales rise 20% to $63.4 billion in second quarter fiscal 2019, compared with $52.9 billion in second quarter fiscal 2018. This figure was about 1% ahead of the $62.6 billion Wall Street consensus.
Net income increased slightly to $2.6 billion in the second quarter, or $5.22 per diluted share, compared with net income of $2.5 billion, or $5.07 per diluted share, in second quarter 2018. EPS missed Wall Street consensus of $5.58 by $0.36.
Looking ahead to the third quarter, Amazon expects net sales to be between $66 billion and $70 billion, or to grow between 17% and 24% compared with third quarter 2018. This guidance anticipates an unfavorable impact of approximately three percentage points from foreign exchange rates.
“Customers are responding to Prime’s move to one-day delivery — we’ve received a lot of positive feedback and seen accelerating sales growth,” said Jeff Bezos, Amazon founder and CEO. “Free one-day delivery is now available to Prime members on more than ten million items, and we’re just getting started. A big thank you to the team for continuing to make life easier for customers.”
Amazon also cited impressive continuing growth of Alexa-compatible smart home devices during the quarter, reaching more than 60,000 products from over 7,400 unique brands. There are also now hundreds of third-party devices with Alexa built-in, such as TVs, thermostats, headphones, and vehicles.