Amazon Soars 12% As Firm Continues To Record Net Loss In Q2 2022
Amazon.com, Inc. (Nasdaq: AMZN) reported on Thursday post-closing its financial results for Q2 2022. The company recorded US$121.23 billion in net sales, an increase from Q1 2022’s US$116.44 billion and Q2 2021’s US$113.08 billion. The revenue figure also exceeds the upper end of the previously announced guidance of US$116.0 – US$121.0 billion.
After the firm released its financials post-closing, shares soared by 12% in pre-market trading.
“Despite continued inflationary pressures in fuel, energy, and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network,” said CEO Andy Jassy.
Breaking down the topline quarterly sales, North America division contributed US$74.43 billion, international sales contributed US$27.07 billion, and Amazon Web Services added US$19.74 billion. But only the latter contributed with an operating income of US$5.72 billion while the former two continues to notch operating losses of US$627 million and US$1.77 billion, respectively.
All these contributed to a net operating income of US$3.32 billion, also beating the upper end guidance of US$3.0 billion. This translates to an operating margin of 2.74%, lower compared to 3.2% recorded last quarter and 6.81% recorded last year.
The tech firm also continued to record net losses, amounting to US$2.03 billion for the quarter–an improvement from last quarter’s net loss of US$3.84 billion but down from last year’s net income of US$7.78 billion. The quarterly bottomline figure translates to US$0.20 loss per share.
The net loss for the quarter is said to be related to the Rivian Automative investment, recording a pre-tax valuation loss of US$3.9 billion.
The tech firm said that year-over-year changes in foreign exchange rates led to a US$3.6 billion unfavorable impact on the quarter’s sales. Excluding this, Q2 2022 net sales is a 10% increase over the year-ago period.
The company also ended the quarter with US$37.48 billion in cash and cash equivalents, putting the balance of current assets at US$133.67 billion. Meanwhile, current liabilities came in at US$140.29 billion.
For Q2 2022, the firm guides its net sales to be at US$125.0 – US$130.0 billion, a 13%-17% increase over its Q3 2021 numbers but still expecting an “unfavorable impact of approximately 390 basis points from foreign exchange rates.” It also expects the succeeding quarter to record an operating income of 0 to US$3.5 billion, down from Q3 2021’s US$4.9 billion.
Amazon.com last traded at US$122.28 on the Nasdaq.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
