Amazon, to investors, analysts and every other financial expert’s surprise, has posted whopping $92 Million worth of profits for its second 2015 quarter. That being said, Amazon rolled back on a few investments, to show investors that it can reap in profits if it slows down its investing spree.
As for numbers, Amazon earned $0.19 per share in its second quarter, on revenue of $23.18 billion. The street had expected the e-commerce behemoth to lose $0.14 per share on revenue of $22.39 billion. So you see, that’s almost $800 Million more revenues when compared to expectations — and thats huge.
Operating cash flow too saw an increment, going up by 69% to $8.98 billion for the trailing twelve months, compared with $5.33 billion for the trailing twelve months ended June 30, 2014. Free cash flow increased to $4.37 billion for the trailing twelve months, compared with $1.04 billion for the trailing twelve months ended June 30, 2014.
While Amazon’s profits are commendable, they came when the e-commerce company put brakes on its investments, something contrary to the usual Jeff Bezos ideology. Bezos has always been known to invest Amazon’s profits back into Amazon for aggressive business expansion. A more recent example of Bezos’ investment plans, is the $5 Billion he plans to pump into Amazon’s Indian subsidiary.
Michael Pachter, an analyst at Wedbush Securities Inc., who has the equivalent of a buy rating on the stock told Bloomberg,
They are showing investors that if they want to deliver profits, they can. Amazon is a dominant online retailer, well on its way to becoming one of the world’s largest retailers.
Some More Numbers
Net sales increased 20% to $23.18 billion in the second quarter, compared with $19.34 billion in second quarter 2014. Excluding the $1.39 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 27% compared to second quarter 2014.
Operating income was $464 million in the second quarter, compared with operating loss of $15 million in second quarter 2014.
Net income was $92 million in the second quarter, or $0.19 per diluted share, compared with net loss of $126 million, or $0.27 per diluted share, in second quarter 2014.