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Jun 30, 2020
Amazon Q2 2020 Earnings Report
Amazon's financial performance surged, driven by increased online sales and strong AWS growth.
Key Takeaways
Amazon reported a significant increase in net sales, operating income, and net income for the second quarter of 2020. Net sales increased by 40% to $88.9 billion, and net income doubled to $5.2 billion, or $10.30 per diluted share, compared to the same period last year. The company invested heavily in COVID-19 related initiatives, while also expanding its workforce and investing in capital projects.
Net sales increased by 40% year-over-year to $88.9 billion.
Operating income increased to $5.8 billion, compared to $3.1 billion in the second quarter of 2019.
Net income increased to $5.2 billion, or $10.30 per diluted share.
The company spent over $4 billion on incremental COVID-19-related costs.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Amazon anticipates net sales between $87.0 billion and $93.0 billion, representing growth between 24% and 33% compared to the third quarter of 2019. Operating income is expected to be between $2.0 billion and $5.0 billion, compared with $3.2 billion in the third quarter of 2019, which includes over $2.0 billion of costs related to COVID-19.
Positive Outlook
- Net sales are expected to grow between 24% and 33% compared to Q3 2019.
- Continued growth in online sales.
- Expansion of AWS services.
- Investments in new technologies and infrastructure.
- Strong customer engagement with Prime services.
Challenges Ahead
- Anticipates over $2.0 billion of costs related to COVID-19.
- Unfavorable impact from foreign exchange rates.
- Uncertainty regarding the duration and scope of the COVID-19 pandemic.
- Potential impact on consumer demand and spending patterns.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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