Amazon CEO Jeff Bezos
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Amazon reported its fiscal second-quarter earnings after market close on Thursday. The stock climbed about 5.7% after hours after the company beat on both the top and bottom lines.
Here’s how the company did:
- Earnings: $10.30 vs. $1.46 expected, according to analysts surveyed by Refinitiv
- Revenue: $88.91 billion expected, according to analysts surveyed by Refinitiv
Amazon said it expects to take on more than $2 billion in costs on additional coronavirus-related measures. 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.”
Amazon will spend at least $2 billion in the third quarter on procuring personal protective equipment, deep cleaning its facilities, following new safety process paths and wage increases for employees, Bezos said.
Revenue for Amazon’s cloud-computing unit, Amazon Web Services, came in at $10.81 billion for the quarter. Cloud services like Amazon’s have become crucial to organizations during the pandemic as many of their employees have shifted to remote work.
Third-party sales grew 52% year-over-year during the quarter, outpacing growth in Amazon’s first-party sales, which increased 48% year-over-year.
For the third quarter, Amazon said it expects net sales to come in between $87 billion and $93 billion, representing year-over-year growth between 24% and 33%. The company anticipates a range of an operating income of $2 billion and $5 billion, which factors in additional coronavirus-related investments.
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