Amazon shares climbed more than 12% in extended trading on Thursday after the company reported better-than-expected second-quarter revenue and gave an optimistic outlook.
Here are the key numbers:
- EPS: Loss of 20 cents
- Revenue: $121.23 billion vs. $119.09 billion expected, according to Refinitiv
Here’s how other key Amazon segments did during the quarter:
- Amazon Web Services: $19.7 billion vs. $19.56 billion expected, according to StreetAccount
- Advertising: $8.76 billion vs. $8.65 billion expected, according to StreetAccount
Revenue growth of 7% in the second quarter topped estimates, bucking the trend among its tech peers, which have all reported disappointing results.
Amazon said it expects to post third-quarter revenue between $125 billion and $130 billion, representing growth of 13% to 17%. Analysts were expecting sales of $126.4 billion, according to Refinitiv.
Amazon has been contending with higher costs, as pandemic-driven expansion left the company with an overhang of too many workers and too much warehouse capacity.
“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,” CEO Andy Jassy said in a statement.
Amazon recorded a $3.9 billion loss on its Rivian investment after shares of the electric vehicle maker plunged 49% in the second quarter. That brings its total loss on the investment this year to $11.5 billion.
Because of the Rivian writedown, analyst estimates varied dramatically, making it difficult to compare actual results to a consensus number.
Amazon’s ad business is a bright spot in an otherwise gloomy quarter for online advertising, and shows the company is picking up share in one of its fastest-growing businesses.
Ad revenue climbed 18% in the period. Facebook, meanwhile, recorded its first ever drop in revenue this week, and forecast another decline for the third quarter. At Alphabet, advertising growth slowed to 12%, and YouTube showed a dramatic deceleration to 4.8% from 84% a year earlier.
Among the other top tech companies, Microsoft also reported disappointing results this week. Apple beat on the top and bottom lines, lifting the stock in after-hours trading.
This story is developing. Check back for updates.