Amazon.com AMZN reported second-quarter 2019 earnings of $5.22 per share, surging 3% from the year-ago quarter. However, the figure missed the Zacks Consensus Estimate by 7 cents.
Further, net sales of $63.40 billion comfortably surpassed the Zacks Consensus Estimate of $62.569 billion and came within the company’s guided range of $59.5 billion to $63.5 billion. Further, the figure exhibited year-over-year growth of 20%.
Excluding the unfavorable foreign exchange impact, sales would have exhibited improvement of 21% year over year.
North America revenues (61% of sales) increased 20.2% from the year-ago quarter to $38.65 billion. International revenues (25.8% of sales) increased 12% year over year to $16.37 billion. Amazon Web Services (AWS) revenues (13.2% of sales) surged 37.3% year over year to $8.38 billion.
The company’s strong endeavors to strengthen delivery system further contributed to the results. Prime Free One Day service remained a major positive throughout the quarter as it helped in gaining traction among customers. Moreover, solid momentum across Prime and expanding AWS portfolio drove the top line. Additionally, robust skill set of Alexa was a tailwind.
Prime Expansion: Key Catalyst
During the second quarter, the e-commerce giant remained focused on grocery services. The company’s two-hour delivery service of natural and organic products from Whole Foods stores via Prime Now expanded to additional U.S. cities, thus making it available in 90 U.S. metros.
Further, AmazonFresh, which is another Prime enabled fast delivery service for daily essentials and grocery items, was introduced in Las Vegas.
Prime Free One Day service, which is Amazon’s free one-day shipping service, was extended across the United States. Further, the service now covers 10 million products.
Amazon also expanded Prime’s global presence by rolling out the service in the United Arab Emirates during the reported quarter.
Additionally, it launched Amazon Flex in India, in order to strengthen its Prime delivery services in the country. Notably, the service also encourages non-Prime delivery.
Apart from the delivery system, the company also focused on streaming services. Prime Video aired original series, Good Omens. Further, it streamed Jonas Brothers documentary, Chasing Happiness.
Further, Prime Video received double the Emmy nominations compared with year-ago quarter owing to robust original content portfolio. It received 20 nominations for The Marvelous Mrs. Maisel and 11 nominations for Fleabag alone. Total number of nominations stood at 47.
Additionally, Amazon announced integration with Alphabet’s GOOGL division Google and recently Prime Video and YouTube on each other’s streaming devices.
Further, the company witnessed splendid Prime Day performance in which sales outpaced the combined sales of Black Friday and Cyber Monday.
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