Amazon Q2 Earnings Miss Put These ETFs In Focus
Zacks Investment Research | Jul 25, 2019 10:25PM ET
After the closing bell on Thursday, the online e-commerce behemoth Amazon (NASDAQ:AMZN) reported mixed Q2 results, beating revenue estimates but missing on earnings.
Earnings per share came in at $5.22, below the Zacks Consensus Estimate of $5.29 but higher than the year-ago earnings of $5.04. The miss stemmed from higher spending related to faster delivery of packages to Prime members that has taken toll on profitability.
Revenues climbed 20% year over year to $63.4 billion and edged past the estimated $62.6 billion. The growth rate represents the acceleration from 17% growth in the first quarter and puts Amazon back on track with growth seen in the fourth quarter of 2018. In particular, revenues from the cloud computing business — Amazon Web Services — surged 37% year over year to $8.4 billion.
The company offered upbeat revenue guidance for the ongoing quarter. For the third quarter, the company expects revenues to grow 17-24% to $66-$70 billion. The mid-point of the range is slightly above the current Zacks Consensus Estimate of $67.2 billion, which indicates 18.8% growth. Amazon is facing heightened regulatory scrutiny with antitrust officials in the United States and European Union launching investigations into the company’s business practices (read: Zacks Investment Research
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