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Amazon $7 million in the red on $15.7 billion in sales

updated 08:23 pm EDT, Thu July 25, 2013

Wall Street earnings estimates missed, by $14 million

Amazon posted its quarterly earnings, with generally unfavorable results. Net sales increased 22 percent to $15.70 billion in the second quarter, compared with $12.83 billion in second quarter of 2012. Excluding the $392 million negative impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 25 percent year-over-year. Despite the sales gains, the company posted a $7 million loss in the second quarter, compared with a $7 million profit in the second quarter of last year.

Operating income decreased 26 percent to $79 million in the second quarter, compared with $107 million in second quarter 2012. Operating cash flow increased 41 percent to $4.53 billion for the trailing twelve months, compared with $3.22 billion for the previous trailing twelve months.

Highlights from the company's second quarter include an expanded multi-year, multi-national digital video licensing agreement to bring hundreds of TV shows and thousands of TV episodes from Viacom to Prime Instant Video. The deal includes collection of TV shows that customers won't find on any other digital video subscription service.

Additionally, Amazon Web Services (AWS) became the first major cloud provider to achieve FedRAMP Compliance, which recognizes the ability of AWS to meet extensive security requirements and compliance mandates for running sensitive US government applications and protecting data. FedRAMP certification simplifies and speeds the ability for government agencies to evaluate and adopt AWS for a wide range of applications and workloads.

Estimates for the third quarter of 2013 financials were also given. Net sales are expected to be between $15.45 billion and $17.15 billion, or to grow between 12 and 24 percent from the year-ago quarter. Operating loss is expected to be between $440 million and $65 million, compared to $28 million in third quarter 2012.



By Electronista Staff
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Comments

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: 11-28-08

    All this means is that Amazon will rise even higher than before. It's almost assured Amazon's share price will surpass Apple's by the end of next year. The hedge funds just love Jeff Bezos and Amazon. They absolutely hate Tim Cook and Apple. Jeff Bezos knows how to put shareholder value in Amazon. Tim Cook doesn't know how to put shareholder value in Apple. Amazon's share price will rise despite losses. Apple's share price will fall despite profits.

  1. Fonejacker

    Fresh-Faced Recruit

    Joined: 01-11-10

    I will never understand Amazon or City Investors. Amazon took 9 years to make a small profit. Most good companies make a profit at year 4 or 5 from start-up. Its wafer-thin profits are just 1 or 2% of its turnover. It floats from small profits to losses on a regular basis. How can shareholders get dividends on tiny wafer-thin profits? How can its shares be attractive to anyone? I was always taught profit is the most important thing in any business, not turnover. What's it worth based on? Assets? What assets? It can't even make any money from Kindle. My pension is sure not going to be invested in Amazon. A company that could go bust anytime.

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