A Division of NBCUniversal. Despite the pandemic, analysts estimate Amazon's revenue will rise 24.3% for all of FY 2020. All rights reserved, Amazon.com Announces Second Quarter Results. Last quarter, Amazon said it would spend all of its estimated $4 billion profit between April and June on similar efforts. Accessed July 22, 2020. That's illustrated by EPS performance in Q2 periods during the past three fiscal years, with EPS falling by 77.6% in FY 2017, rising 1,165.7% in 2018, and essentially flat at 3.0% growth in FY 2019. And the rich margins of AWS are crucial to helping its bottom line as expenses soar at Amazon's giant, low-margin e-commerce business.. Data is a real-time snapshot *Data is delayed at least 15 minutes. "Cook the books" is a slang term for using accounting tricks to make a company's financial results look better than they really are. "Amazon's Q1 profit misses Wall Street estimates even as sales jump on a surge in consumer demand." Amazon reported blowout second-quarter results on Thursday, including a huge beat on the top line and double-digit revenue growth year-over-year, helped by surging sales amid the coronavirus pandemic.

Amazon's superior performance has come despite missing earnings estimates in its most recent quarter, and as CEO Jeff Bezos spends billions of dollars to ramp up Amazon's supply chains and warehouse safety procedures amid the pandemic.. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Get this delivered to your inbox, and more info about our products and services.
Investopedia requires writers to use primary sources to support their work. The Earnings Whisper Score gives the statistical odds for the stock ahead of earnings.

The company's one- and two-day delivery services were hampered with delays, marking a rare disruption in its normally speedy shipping operations. Forward earnings are an estimate of a company's next period's earnings, usually to the end of the current fiscal year, sometimes to the following year. Organic sales are revenues generated from the firm's existing operations as opposed to acquired operations. Tensions have been growing between Amazon and warehouse workers nationwide, with employees claiming the company hasn't done enough to protect them from catching the coronavirus. Amazon (AMZN) Q2 2020 Earnings Call Transcript AMZN earnings call for the period ending June 30, 2020. As quarantine has forced people to stay inside, Amazon's e-commerce sales blasted off and smashed expectations.

Investors will look closely at how these trends are affecting the company when Amazon reports earnings after the market close on July 30 for Q2 FY 2020. By contrast, while most of Amazon's sales come from e-commerce, these sales have relatively low profit margins. Past performance is not indicative of future results. Amazon was also able to "ship a lot more," Olsavsky said. Amazon's "other" category, which is primarily made up of its advertising business, generated $4.22 billion in revenue, up 41% year over year.

However, with companies looking to cut costs as a result of the broader economic downturn, Amazon, Microsoft and Google have all seen cloud revenue growth slow down year over year. Earlier this month, Amazon said it would institute quantity limits for product shipments from third-party sellers that use its U.S. warehouses, as part of an effort to make sure there's enough space to store goods. Amazon Web Services grew, but by slightly less than analysts had expected. Investors will look closely at how these trends are affecting the company when Amazon reports earnings after the market close on July 30 for Q2 FY 2020. Analysts currently expect a very mixed quarter. "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 a statement. Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. At this rate, Amazon's Q2 revenue would more than double between 2017 and 2020. Shares are up 6.1% since reporting last quarter. Additionally, its Prime Day shopping event, which typically occurs mid-July, will now take place in the fourth quarter, aligning with the early October guidance it sent third-party sellers.
For Q2 FY 2020, analysts estimate cloud revenue will increase 31.1%, the lowest level in at least four years. In Q1 FY 2020, this growth slowed slightly to 32.8%. The stock climbed about 5.3% after hours. © 2020 CNBC LLC. "Visible Alpha," Accessed July 22, 2020. Thus, any improvement to AWS revenue will provide an outsized boost to overall profits as compared with a similar improvement to e-commerce revenue. Copyright © 1998 - 2020 EarningsWhispers, - the professionals' earnings expectation.

This is after Amazon invested $4 billion in COVID-19 infection management last quarter around the time when multiple whistle-blowers were fired after speaking up about insufficient protection from the disease. 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. Amazon's cloud-computing unit, Amazon Web Services, reported revenues of $10.81 billion for the quarter, up 29% year over year, but decelerating slightly from the 33% growth it reported in the first quarter. The company anticipates a range of an operating income of $2 billion and $5 billion, which factors in additional coronavirus-related investments. For Q2, analysts expect AWS to post strong sales, though that growth will be slower than recent quarters. The e-commerce giant reported $10.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.74 by $8.56. We know the COVID-19 …

As online orders continue to roll in, the company faces another challenge inside its warehouses. They estimate earnings per share (EPS) will plunge for the third time in four quarters even as the company posts the healthiest revenue gains in seven quarters. The company was able to secure additional capacity in its fulfillment centers to absorb demand, pulling "capacity we didn't think we'd need until 2021," Olsavsky said. It also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo; and provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store. Amazon.com (AMZN) reports earnings on 10/22/2020. Cloud services like Amazon's have become crucial to organizations during the pandemic as many of their employees have shifted to remote work. Amazon's stock is up sharply in after-hours trading.

We want to hear from you. LOG IN. Amazon said it expects to spend more than $2 billion during the third quarter on additional coronavirus-related measures, including procuring personal protective equipment, deep cleaning its facilities and wage increases for employees, among other things. This portion of the company provides corporate and individual clients with cloud services used to run websites, databases, and a variety of programs. Amazon will invest heavily in Covid-19 testing for its employees. You can learn more about the standards we follow in producing accurate, unbiased content in our. Year-over-year (YOY) describes how investors can see a difference in financials or information of a company between comparable quarters or years.

Amazon beats, reports revenue of nearly $89 billion. Amazon continues to work on getting its fulfillment operations back on track after it was hit with a flurry of online orders at the height of the pandemic. 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%.

In finance, the acronym "FANG" refers to the stocks of four prominent American technology companies: Facebook (F), Amazon (AMZN), Netflix (NFLX), and Google (GOOG). As the pandemic wore on, consumer demand shifted away from consumables and groceries, categories that aren't "super profitable" for the company, and toward a more normal mix of products, Amazon CFO Brian Olsavsky told CNBC's Deirdre Bosa. Amazon reported an extraordinary earnings beat, seemingly completely undiminished by the continuing antitrust investigation, roughly doubling its EPS year over year, when analysts had expected it to drop by 75%. A major contributor to Amazon's long-term success is steady growth in its highly profitable Amazon Web Services segment. We also reference original research from other reputable publishers where appropriate. Earnings announcement* for AMZN: Oct 22, 2020 Amazon.com, Inc. is estimated to report earnings on 10/22/2020. Where is AMZN's stock price going from here? AWS sales have grown at an impressive clip in the past several years, although the rate of growth appears to have slowed slightly in recent quarters. Amazon's EPS was $10.30 vs. the $1.32 analysts expected. Despite this slowdown, AWS is more important than ever in bolstering the company's top line, its revenue growth. All Rights Reserved. ), Amazon.com Inc. (AMZN) has proven to be one of the star performers during the COVID-19 crisis amid soaring online shopping and robust demand for cloud computing services. "We've got our hands full on that challenge, but we've got a really good team that's been working very hard probably since late February on this issue.". The offers that appear in this table are from partnerships from which Investopedia receives compensation. Analysts expect that trend to continue, with YOY revenue growth of 27.8% for Q2 FY 2020. Amazon's stock has soared nearly 80% from its March low this year, dramatically outpacing the market. Amazon will invest heavily in Covid-19 testing for its employees.

Amazon.com, Inc. "Q2 2020 Amazon.com, Inc. Earnings Conference Call." While that's faster than FY 2019, it nonetheless would be the slowest pace in five years.. Now, analysts estimate EPS will fall 74.6% YOY to $1.32 per share in Q2 FY 2020. One force causing that decline is that Bezos said the company plans to spend all of Amazon's estimated $4 billion in Q2 operating profit on continued expenses related to COVID-19., By contrast, Amazon has reported strong quarterly YOY revenue growth every quarter for more than four years. Amazon, like many other retailers, was caught off guard by an influx of online orders during the pandemic, which resulted in logistics bottlenecks and supply chain shortages. While the stock dropped the day after the April 30 earnings release, it then rebounded over the next three months. Amazon's EPS performance historically has been erratic as CEO Bezos has focused on long-term growth instead of quarterly profits. The world's largest cloud services business, Amazon Web Services is a major contributor to the company's revenue growth, and also has the highest profit margins of any Amazon business by far. 2 … Sign up for free newsletters and get more CNBC delivered to your inbox. Got a confidential news tip? What do you expect when AMZN reports earnings? Amazon's Q1 profit misses Wall Street estimates even as sales jump on a surge in consumer demand, Q2 2020 Amazon.com, Inc. Earnings Conference Call. Amazon reported its second-quarter results after the closing bell on Thursday, trouncing earnings expectations and reporting double-digit revenue growth year over year. One- and two-day shipping have since recovered somewhat but are "probably considerably behind the going in rate before any of this happened," Olsavsky said on a call with analysts.

Amazon said online grocery sales tripled year-over-year in the second quarter and it increased grocery delivery capacity by more than 160%. Amazon is focused on making more room in its fulfillment centers as it prepares to head into the peak holiday shopping season in November. Earnings: $10.30 per share vs. $1.46 expected, according to analysts surveyed by Refinitiv Revenue: $88.91 billion vs. $81.56 billion expected, according to analysts surveyed by Refinitiv Subscription services, which includes revenue from Prime memberships, were up 29% year-over-year to $6.02 billion. It operates through the North America, International, and Amazon Web Services (AWS) segments. Visible Alpha. Still, demand continues to skyrocket, while Prime subscribers have been shopping more often and buying more products with each order, he added.