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Amazon Q2 Sales Up 22 Percent, Made $15.7 Billion

Amazon usually posts generally favorable earnings results. Its latest quarterly earnings report continues that trend.

Amazon announced today that it made $15.7 billion in net sales in its second quarter. The retailer says that today’s results represent a 22 percent increase in net sales over the $12.83 billion it made in the second quarter of 2012. It said that operating cash flow increased 41 percent to $4.53 billion in the twelve months leading up to June 30.

The retailer also posted a net loss of $7 million this past quarter. Its operating income also decreased 26 percent to $79 million compared to $107 million it made in its previous second quarter. It partially blamed the losses on the “unfavorable impact from year-over-year changes in foreign exchange rates.”

“We’re so grateful to our customers for their response to Kindle devices and our digital ecosystem. This past quarter, our top 10 selling items worldwide were all digital products – Kindles, Kindle Fire HDs, accessories and digital content,” said Jeff Bezos, founder and CEO of Amazon.com. “The Kindle service keeps getting better. The Kindle Store now offers millions of titles including more than 350,000 exclusives that you won’t find anywhere else. Prime Instant Video has surpassed 40,000 titles, including many premium exclusives like Downton Abbey and Under the Dome. And we’ve added more than a thousand books, games, educational apps, movies and TV shows to Kindle FreeTime Unlimited, bringing together in one place all the types of content kids and parents love.”

As for its third quarter 2013 performance, Amazon provided the following predictions:

  • Net sales are expected to be between $15.45 billion and $17.15 billion, or to grow between 12% and 24% compared with third quarter 2012.
  • Operating loss is expected to be between $440 million and $65 million, compared to $28 million in third quarter 2012.
  • This guidance includes approximately $340 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions, investments, restructurings or legal settlements are concluded and that there are no further revisions to stock-based compensation estimates.
  • We’ll also most likely see the reveal of three new Kindle Fires in Amazon’s third quarter. The new hardware will probably not affect its third quarter all that much, but its fourth quarter will see the benefit of new Kindle Fires.