Amazon Misses Revenue but Crushes Earnings in Q2
It was another billion-dollar-plus quarter in terms of profit for Amazon—the company’s third in a row. During a call with analysts on Thursday night, the ecommerce giant—the #1-ranked CE retailer in our Top 101 list—reported second quarter revenue came in at $54.29 billion, just short of the estimated $53.41 billion. But earnings per share checked in at $5.07 versus an estimate of $2.50.
Perhaps even more impressively, Amazon saw its net income increase an astounding 12-fold from the same period a year ago to a record $2.5 billion.
According to analysts, the incredible profit growth for Amazon is largely driven by the company’s high-margin businesses like cloud services and advertising. Amazon CFO Brian Olsavsky pointed to those two services in particular during a conference call, saying they were “big contributors” to the company’s profit growth. The retail business, by comparison, runs on razor-thin margins, which is no surprise given the deep discounts the company offers on products on a very consistent basis.