Amazon today released the company’s fiscal 2022 second-quarter earnings. The report shows that Amazon’s second-quarter net sales were $121.234 billion, an increase of 7% compared with $113.080 billion in the same period last year, and a 10% year-on-year increase excluding the impact of exchange rate changes; a net loss of $2.028 billion, compared with the same period last year. Net income for the same period last year was $7.778 billion; diluted loss per share was $0.20, compared with earnings per diluted share of $0.76 for the same period last year.
Amazon’s second-quarter net sales beat Wall Street analysts’ expectations, but its diluted loss per share was worse than expected. Meanwhile, Amazon’s forecast for fourth-quarter revenue beat expectations, sending its shares up more than 12% after hours.
Amazon’s second-quarter revenue of $121.2 billion, a year-on-year turnaround
Main achievement:
For the quarter ended June 30, Amazon posted a net loss of $2.028 billion, or $0.20 per diluted share, worse than a year earlier. In the second quarter of fiscal 2021, Amazon’s net income was $7.778 billion, or $0.76 per diluted share. Amazon’s second-quarter operating profit was $3.317 billion, compared with $7.702 billion in the same period last year; net sales were $121.234 billion, an increase of 7% compared with $113.080 billion in the same period last year. Excluding the $3.6 billion negative impact from currency changes, Amazon’s second-quarter net sales rose 10% year over year.
Amazon’s second-quarter sales beat Wall Street analysts’ expectations, but its diluted loss per share was worse than expected. According to data provided by Yahoo Finance Channel, 37 analysts had expected Amazon’s second-quarter diluted earnings per share to reach $0.13, and 40 analysts had expected Amazon’s second-quarter net sales to reach $119.09 billion.
In April, Amazon projected second-quarter fiscal 2022 net sales of $116 billion to $121 billion, an increase of 3% to 7% year over year, including an expected negative impact of about 200 basis points from currency movements. influences. Amazon also projected at the time that operating profit in the second quarter of fiscal 2022 would be -$1 billion to $3 billion, compared with $7.7 billion in the same period in fiscal 2021. The aforementioned guidance assumes that the Prime Day event will take place in the third quarter of 2022.
Operational data:
Amazon’s second-quarter net product sales were $56.575 billion, compared to $58.004 billion a year earlier; net services sales were $64.659 billion, compared to $55.076 billion a year earlier.
By region:
- Amazon North America (U.S., Canada) second quarter net sales of $74.430 billion, up 10% from $67.550 billion in the prior year; operating loss of $627 million, compared to operating loss in the prior year Profit was $3.147 billion.
- Amazon International (UK, Germany, France, Japan, and China) second-quarter net sales of $27,065 million, down 12% from $30,721 million a year earlier; operating loss of $1,771 million, compared to $30,721 million a year earlier Operating profit for the same period last year was $362 million.
- Net sales of Amazon’s AWS cloud services in the second quarter were $19.739 billion, up 33% from $14.809 billion in the same period last year; operating profit was $5.715 billion, compared with operating profit of $4.193 billion in the same period last year Dollar.
- Sales from Amazon’s North American division accounted for 62% of total sales in the second quarter, compared to 60% for the same period a year earlier; sales from international divisions accounted for 62% of total sales 22%, compared to 27% a year earlier; sales from AWS cloud services accounted for 16% of total sales, compared to 13% a year earlier %.
By service and business type:
- Amazon’s second-quarter net sales from online stores were $50.855 billion, down 4% from $53.157 billion in the same period last year, and flat year-over-year excluding the impact of currency changes;
- Net sales from brick-and-mortar stores were $4.721 billion, an increase of 12% compared to $4.198 billion in the same period last year, or a 13% increase excluding the impact of currency changes;
- Net sales from third-party seller services were $27,376 million, an increase of 9% compared to $25,085 million in the same period last year, or a 13% increase excluding the impact of currency changes;
- Net sales from subscription services were $8.716 billion, an increase of 10% compared to $7.917 billion in the same period last year, or a 14% increase excluding the impact of currency changes;
- Net sales from AWS cloud services were $19.739 billion, an increase of 33% compared to $14.809 billion in the same period last year, and a 33% increase excluding the impact of currency changes;
- Net sales from other businesses were $1,070 million, an increase of 131% compared to $463 million in the same period last year, or a 135% increase excluding the impact of currency changes.
Cash Flow Information:
For the 12 months ended June 30, 2022, Amazon’s cash flow from operations was $35.6 billion, down 40% from a year earlier; for the 12 months ended June 30, 2021, Amazon’s operating cash flow was $59.3 billion.
For the 12 months ended June 30, 2022, Amazon’s free cash flow was -$23.5 billion, which was nowhere near the same period a year ago; for the 12 months ended June 30, 2021, Amazon’s free cash flow Cash flow was $12.1 billion.
After deducting principal repayments, Amazon’s free cash flow for the past 12 months was -$33.5 billion, far less than the same period last year; for the 12 months ended June 30, 2021, Amazon deducted the aforementioned items Future free cash flow is $600 million.
After deducting principal repayments and assets acquired under capital leases, Amazon’s free cash flow for the trailing 12 months was -$26.1 billion, well below the prior year period; in the 12 months ended June 30, 2021 In time, Amazon’s free cash flow excluding the aforementioned items was $4.2 billion.
Performance Outlook:
Amazon expects third-quarter fiscal 2022 net sales to be between $125 billion and $130 billion, up 13% to 17% year-over-year, including an expected negative impact of about 390 basis points from currency changes, The outlook averaged $127.5 billion, beating analysts’ previous expectations. According to data provided by Yahoo Finance, 39 analysts had expected Amazon’s third-quarter net sales to reach $126.42 billion on average.
Amazon also expects operating profit to be between $0 and $3.5 billion in the third quarter of fiscal 2022, compared with $4.9 billion in the same period in 2021. This performance outlook assumes no additional business acquisitions and restructuring activities and no judicial settlements during the third quarter.
Share price changes:
On the same day, Amazon rose $1.31 in regular Nasdaq trading to close at $122.28, or 1.08%. In subsequent after-hours trading as of 5:23 p.m. ET on Thursday (5:23 a.m. Beijing time on Friday), Amazon shares rose again by $15.01, or 12.28%, to $137.29. Over the past 52 weeks, Amazon’s highest price was $188.11 and its lowest price was $101.26.