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Amazon Profit Soars In Q2

Amazon’s profit has soared in the 2016 second quarter, up over nine times on what it delivered in last year’s corresponding quarter.

Amazon’s second quarter sales rose 31 per cent year-on-year to US$30.4 billion (around $40.37 billion), with net income totalling US$857 million, compared to last year’s quarter two result of US$92 million.

Operating income of US$1.3 billion was up from US$464 million year-on-year.

As reported by Reuters, the US$857 million earnings, or US$1.78 per share, compared with analysts’ average estimate of US$1.11 per share, according to Thomson Reuters I/B/E/S.

Among Amazon’s individual business segments, its Amazon Web Services (AWS) cloud computing services segment enjoyed a strong quarter, posting net sales of US$2.89 billion, up from US$1.82 billion year-on-year, with operating income of US$718 million up from US$305 million.

“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,” Jeff Bezos, Amazon founder and CEO, commented.

“The team in India is inventing at a torrid pace, and we’re very grateful to our Indian customers for their welcoming response.”

While Amazon has forecast strong net sales for the third quarter, it has left a wide margin open on operating income.

Amazon has forecast net sales of between US$31 billion and US$33.5 billion, growing between 22 per cent and 32 per cent year-on-year, and operating income between US$50 million and US$650 million, compared with US$406 million in last year’s corresponding quarter.

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