Amazon's Q2 Profit Growth Slows

Amazon's record profit streak has come to an end, with the company reporting a 3.6% rise to $2.63 billion in Q2 profits, with growth down on the previous four quarters:

Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its second quarter ended June 30, 2019.

Operating cash flow increased 65% to $36.0 billion for the trailing twelve months, compared with $21.8 billion for the trailing twelve months ended June 30, 2018. Free cash flow increased to $25.0 billion for the trailing twelve months, compared with $10.4 billion for the trailing twelve months ended June 30, 2018. Free cash flow less principal repayments of finance leases and financing obligations increased to $16.1 billion for the trailing twelve months, compared with $4.1 billion for the trailing twelve months ended June 30, 2018. Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $13.0 billion for the trailing twelve months, compared with $546 million for the trailing twelve months ended June 30, 2018.

Common shares outstanding plus shares underlying stock-based awards totaled 510 million on June 30, 2019, compared with 506 million one year ago.

Net sales increased 20% to $63.4 billion in the second quarter, compared with $52.9 billion in second quarter 2018. Excluding the $814 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 21% compared with second quarter 2018.

Operating income increased to $3.1 billion in the second quarter, compared with operating income of $3.0 billion in second quarter 2018.

Net income increased to $2.6 billion in the second quarter, or $5.22 per diluted share, compared with net income of $2.5 billion, or $5.07 per diluted share, in second quarter 2018.

“Customers are responding to Prime’s move to one-day delivery — we’ve received a lot of positive feedback and seen accelerating sales growth,” said Jeff Bezos, Amazon founder and CEO. “Free one-day delivery is now available to Prime members on more than ten million items, and we’re just getting started. A big thank you to the team for continuing to make life easier for customers.”

Third Quarter 2019 Guidance

• Net sales are expected to be between $66.0 billion and $70.0 billion, or to grow between 17% and 24% compared with third quarter 2018. This guidance anticipates an unfavorable impact of approximately 30 basis points from foreign exchange rates.
• Operating income is expected to be between $2.1 billion and $3.1 billion, compared with $3.7 billion in third quarter 2018.
• This guidance assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded.

Source : Insight DIY Team and Amazon

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