Amazon.com Inc. (AMZN) posted second-quarter earnings on Thursday, riding way past analyst expectations. Sales numbers, however, slightly missed the mark. The stock climbed around 4% following the earnings release.
The e-commerce giant reported net sales of $52.9 billion for the second quarter of 2018, up 39% from the same period last year. Excluding favorable impacts from FX rates, net sales increased 37%.
Net income increased to $2.5 billion or $5.07 per diluted share compared to $197 million or $0.40 per diluted share in the prior-year period.
Net sales for the North America segment rose 44% while sales in the International segment increased 27%. Sales for Amazon Web Services (AWS) saw a 49% growth to $6.1 billion for the quarter.
For the third quarter of 2018, Amazon expects net sales to grow 23-31% to $54-$57.5 billion. Operating income is expected to be between $1.4 billion and $2.4 billion.
Amazon’s results demonstrate strength in its cloud and advertising businesses which are more profitable than its retail business. The strong earnings and rise in stock could take Amazon closer to the $1 trillion mark.
Amazon is expanding its grocery delivery service from Whole Foods Market to more than 20 cities in the US, while also offering Prime member savings at Whole Foods stores across the nation.
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