Amazon misses second-quarter profit estimates on higher delivery costs
Amazon.com on Thursday reported second-quarter profit below analysts' estimates, as the world's biggest online retailer spent more money on faster delivery of packages
Shares of the company were down nearly 2 per cent at $US1939.05 in extended trading on Wall Street.
The company said its operating expenses surged about 21 per cent in the quarter to $US60.32 billion as it invested $US800 million in the second quarter for its one-day delivery program to members of its Prime subscription service.
The company forecast net sales in the range of $US66 billion and $US70 billion for the third quarter. Analysts were expecting revenue of $US67.27 billion, according to IBES data from Refinitiv.
Net sales in North America, its biggest market, jumped 20 per cent to $US38.65 billion during the quarter. Analysts had expected revenue of $US37.04 billion.
Revenue from cloud computing unit Amazon Web Services (AWS) surged 37.3 per cent to $US8.38 billion, but missed estimates of $US8.47 billion, according to IBES data from Refinitiv.
Net sales rose about 20 per cent to $US63.40 billion in the second quarter, beating estimates of $US62.48 billion.
Amazon's net income rose to $US2.63 billion, or $US5.22 per share, in the quarter ended June 30, from $US2.53 billion, or $US5.07 per share, a year earlier.
Analysts were expecting a profit of $US5.57 per share, according to IBES data from Refinitiv.
Reuters