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Jun 30, 2021
Amazon Q2 2021 Earnings Report
Amazon's second quarter results showcased significant growth in net sales and income, driven by strong performance in both its consumer business and AWS.
Key Takeaways
Amazon.com announced strong second-quarter results, with net sales increasing by 27% to $113.1 billion and net income rising to $7.8 billion, or $15.12 per diluted share. The company continues to invest in employee safety, small business empowerment, and sustainability initiatives.
Net sales increased 27% to $113.1 billion, compared to $88.9 billion in the second quarter of 2020.
Operating income increased to $7.7 billion, up from $5.8 billion in the prior year.
Net income rose to $7.8 billion, or $15.12 per diluted share, compared to $5.2 billion, or $10.30 per diluted share, in the second quarter of 2020.
AWS growth reaccelerated as more companies moved to the cloud.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Amazon anticipates net sales between $106.0 billion and $112.0 billion for the third quarter of 2021, representing a growth of 10% to 16% compared to the third quarter of 2020. Operating income is expected to be between $2.5 billion and $6.0 billion, compared to $6.2 billion in the third quarter of 2020. This guidance assumes approximately $1.0 billion of costs related to COVID-19.
Positive Outlook
- Net sales are expected to grow between 10% and 16% compared with third quarter 2020.
- Anticipates a favorable impact of approximately 70 basis points from foreign exchange rates.
- Continued growth in AWS and other service offerings.
- Expansion of Prime membership benefits and availability in more countries.
- Investments in new technologies and services to enhance customer experience.
Challenges Ahead
- Operating income is expected to be lower compared to third quarter 2020.
- Assumes approximately $1.0 billion of costs related to COVID-19.
- Guidance is subject to substantial uncertainty due to various factors, including fluctuations in foreign exchange rates and changes in global economic conditions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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