Amazon shares fell more than 5% in expanded trading on Thursday after the company reported its first drop in sales in three years and gave poor guidance for the third quarter.
This is how the company did it:
- Merits: $ 15.12 vs. According to analysts polled by Refinitiv, USD 12.30 per share
- Revenue: $ 113.08 billion versus $ 113.08 billion $ 115.2 billion, according to the analysts polled by Refinitiv
Amazon’s revenue rose 27% year-over-year to $ 113.08 billion, marking the third straight quarter in which revenue exceeded $ 100 billion. However, that still fell short of Wall Street’s forecast of $ 115.2 billion.
For the third quarter, Amazon expects sales between 106 and 112 billion US dollars, which corresponds to a growth of 10 to 16 percent compared to the same period last year. That’s well below the consensus estimate of $ 119.2 billion.
Amazon said its third quarter operating profit will be between $ 2.5 billion and $ 6 billion, a remarkably large gap. This is still a step below the $ 6.2 billion cost of coronavirus security measures in Q3 2020.
The June quarter reflects the final full quarter of Jeff Bezos’ tenure as CEO. On July 5, Bezos passed the role of CEO to Andy Jassy, who previously ran AWS. Bezos is now Executive Chairman. It is unclear whether Jassy will be attending Amazon’s conference call on Thursday evening after winning. Bezos has not participated in a profit talk since 2009.
In a statement, Jassy thanked Amazon employees for their work during the coronavirus pandemic, adding, “I’m very excited to work with you as we invent and build the future.”
The other pillar of Amazon’s business, Amazon Web Services, grew revenue 37% in the second quarter, faster than 32% in the previous quarter. AWS revenue for the quarter was $ 14.81 billion, beating analysts’ estimates of $ 14.20 billion.
This story evolves. Check back for updates.
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