LIVE: Amazon Earnings Are Out And Stocks Are Falling After Miss On Earnings

Jeff Bezos Getty / Scott OlsonAmazon CEO Jeff Bezos

Amazon Q2 earnings are out, and the company has delivered a disappointing report.

Amazon delivered worse than expected EPS, though its revenue was right in line with expectations.

Revenue guidance for next quarter was about in line with expectations, but it guided to a big loss. That sent the stock down 7% after-hours.

Here are the numbers:

  • EPS: -$0.27 (analysts were expecting a loss of $0.15).
  • Revenues: $19.34 billion (analysts were expecting $19.34 billion). That’s right in line, and an increase of 23% year-over-year.
  • Revenue guidance for next quarter: $19.7 billion – $25 billion, which is in-line with what analysts were expecting.

The operating loss for Q2 was $15 million, compared with operating income of $79 million in second quarter 2013. The net loss was $126 million.

The thing that really stands out is operating loss guidance for next quarter of between $810 million and $410 million, compared to $25 million in third quarter 2013. According to Bloomberg, analysts were only expecting a $10 million loss. This guidance includes about $410 million for stock-based compensation.

Here’s a chart of Amazon’s global revenues, from BI Intelligence:

Here’s the official statement from CEO Jeff Bezos:

We continue working hard on making the Amazon customer experience better and better. We’ve recently introduced Sunday delivery coverage to 25% of the U.S. population, launched European cross-border Two-Day Delivery for Prime, launched Prime Music with over one million songs, created three original kids TV series, added world-class parental controls to Fire TV with FreeTime, and launched Kindle Unlimited, an eBook subscription service. For our AWS customers we launched Amazon Zocalo, T2 instances, an SSD-backed EBS volume, Amazon Cognito, Amazon Mobile Analytics, and the AWS Mobile SDK, and we substantially reduced prices. And today customers all over the U.S. will begin receiving their new Fire phones — including Firefly, Dynamic Perspective, and one full year of Prime — we can’t wait to get them in customers’ hands.

Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.

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