Amazon Beats Earnings Expectations in Q2

jeff bezos amazon
Online retail giant Amazon blew past Wall Street expectations for its Q2 earnings, with significant increases in both sales and profit year-on-year which CEO Jeff Bezos credited towards the growth of its Indian business.

Adjusted earnings per share came in at $1.78 (£1.34), compared to Wall Street forecasts of $1.11, while revenues for the quarter were $30.4bn, compared to analysts expectations of $29.55bn.

Those figures calculated as a 31 per cent increase in net sales, which led to a net income increase of over 800 per cent, from $92m to $857m year-on-year. Despite the successes, Amazons shares jumped by only two per cent in after-hours trading.

Looking forward, the company predicted a slight quarter-on-quarter increase in revenues for Q3, somewhere between $31bn and $33.5bn, but left a wide range for operating income, which they estimate could be anywhere from $50m to $650m.

The company has invested heavily in several ambitious projects over the past year, from Alexa and Amazon Fresh to its Amazon Web Services division, and the firm has historically not made huge profits despite consistently growing revenues due to its constant investment in growth.

One person who is seeing the benefits of Amazons successes is Jeff Bezos, however. The strong quarterly results, combined with the growth in Amazons shares since February, has made Bezos the third richest person alive, with an estimated fortune of $65.3bn. He is beaten only by Zara founder Amancio Ortega ($73.1bn) and Bill Gates ($78bn).

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