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Amazon (AMZN) reported second-quarter results late Thursday that beat estimates on revenue but missed on earnings. Amazon stock jumped on the news.
The e-commerce giant reported an adjusted loss of 20 cents a share on revenue of $121.2 billion. Analysts expected Amazon to report earnings of 12 cents a share on revenue of $119 billion. Revenue climbed 7% from the year-ago period.
Revenue from Amazon Web Services reached $19.7 billion, up 33% from the year-ago quarter and beating estimates of $19.56 billion.
Amazon stock surged 12% to 136.20 during after-hours trading on the stock market today as the company predicts sales ahead of views.
For its third quarter Amazon expects net sales in the range of $125 billion to $130 billion, with a midpoint at $127.5 billion. The Wall Street estimate calls for $126.5 billion.
“Despite continued inflationary pressures in fuel, energy, and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network,” Chief Executive Andy Jassy said in written remarks with the Amazon earnings release.
“We’re also seeing revenue accelerate as we continue to make Prime even better for members, by both investing in faster shipping speeds, and adding unique benefits,” he added.
It’s been a roller-coaster ride for Amazon ever since the pandemic struck in 2020. The company was a huge beneficiary as consumers first hunkered down and relied heavily on home delivery.
Since then, Amazon stock has faced plenty of pain to regain its footing. Negative aftereffects of Covid-19 severely disrupted the company’s operations. This included supply chain and worker disruptions, wage increases and higher fuel costs. Further, the war in Ukraine took its toll, as did inflation.
Editor’s note: An earlier version of this story incorrectly reported Amazon recorded a profit of 20 cents a share for the quarter instead of a loss at 20 cents a share.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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