Amazon reported $6.57 billion revenues today on $0.45 earnings per share.That’s a miss on earnings, which the Street expected to come in at $0.54 per share. Shares were down 14% in after-market trading as of 4:27 PM EST.
More numbers from the release:
- Operating cash flow was $2.56 billion for the trailing twelve months, compared with $1.88 billion for the trailing twelve months ended June 30, 2009.
- Free cash flow increased 29% to $1.99 billion for the trailing twelve months, compared with $1.54 billion for the trailing twelve months ended June 30, 2009.
- Net sales increased 41% to $6.57 billion in the second quarter, compared with $4.65 billion in second quarter 2009.
- Excluding the $48 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 42% compared with second quarter 2009.
- Operating income increased 71% to $270 million in the second quarter, compared with $159 million in second quarter 2009.
- The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $10 million. Second quarter 2009 operating income was negatively impacted by a $51 million legal settlement.
- Net income increased 45% to $207 million in the second quarter, or $0.45 per diluted share, compared with net income of $142 million, or $0.32 per diluted share, in second quarter 2009.
- Go here for the full release.
Earlier today, Citi analys Mark Mahaney reported Wall Street expected Amazon to report $6.58 billion revenues on $0.54 earnings per share.
Mark calls Amazon a “core Internet franchise” for four reasons:
- Management strength – AMZN has consistently and successfully obsessed with innovation & customer experience
- Competitive moats – it’s increasingly hard to imagine someone taking share from Amazon in its core businesses, although we do focus on the potential negative impact of developments like the launch of Apple’s iPad on Amazon’s Kindle device and eBook offerings
- Significant long-term growth opportunity – our Double-Double thesis – over the next 10 years, Online share of Retail Sales (currently about 8.0%) could double while Amazon’s share of Online Retail Sales (currently 12%) could reach 20%; and
- Inherently attractive business model – margin expansion and significant conversion of earnings per share into free cash flow.
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