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.