Amazon crushes earnings expectations

Two weeks after its second annual Prime Day surpassed expectations, Amazon’s winning streak continued as it posted its fifth straight quarter of profitability.



The online giant posted adjusted earnings per share of $1.78 for the quarter ended June 30, easily surpassing expectations for $1.11. Net income was $857 million, compared with $92 million in the year-ago period.



Amazon Web Services (AWS) was crucial to the company’s second quarter profit performance, and accounted for more than half of its overall profits, reported mashable.com.



“While its (AWS) sales are a relatively small part of the company, the business now contributes more profits than its overall North America operations,” the report said.



Amazon’s net sales for the quarter also came in higher than expected, jumping 31% to $30.4 billion, up from $23.2 billion in the year-ago period.



Detailing its second quarter highlights, Amazon said its second annual Prime Day was the biggest sales day ever for Amazon, and was also a record day for Amazon devices globally. Compared to Prime Day 2015, worldwide orders grew by more than 60%.



In its quarterly release, Amazon also highlighted its recent activity in India.



“It’s been a busy few months for Amazon around the world, and particularly in India — where we launched a new AWS Region, introduced Prime with unlimited free shipping, and announced that Prime Video is coming soon, offering Prime members in India exclusive access to Amazon Original Series and Movies — including original content featuring top Indian creators and talent,” said Jeff Bezos, founder and CEO of Amazon.com.



Looking ahead to the third quarter, Amazon said it expects net sales between $31.0 billion and $33.5 billion, or to grow between 22% and 32% compared the year-ago period.