Loading...
•
Jun 30, 2022
Amazon Q2 2022 Earnings Report
Amazon's financial performance was impacted by inflationary pressures and a valuation loss from its investment in Rivian Automotive, resulting in a net loss for the quarter.
Key Takeaways
Amazon's Q2 2022 results showed a 7% increase in net sales to $121.2 billion, but operating income decreased to $3.3 billion, and the company reported a net loss of $2.0 billion, or $0.20 per diluted share, which includes a pre-tax valuation loss of $3.9 billion from its investment in Rivian Automotive, Inc.
Net sales increased by 7% to $121.2 billion, or 10% excluding the impact of foreign exchange rates.
Operating income decreased to $3.3 billion, compared to $7.7 billion in the second quarter of 2021.
Amazon Web Services (AWS) net sales increased 33% year over year to $19.7 billion, with operating income increasing to $5.7 billion.
The company is focused on improving the productivity of its fulfillment network and making Prime even better for members.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Amazon expects net sales between $125.0 billion and $130.0 billion, representing growth between 13% and 17% compared to Q3 2021. Operating income is expected to be between $0 and $3.5 billion, compared with $4.9 billion in Q3 2021. This guidance anticipates an unfavorable impact of approximately 390 basis points from foreign exchange rates.
Positive Outlook
- Net sales are expected to grow between 13% and 17% compared with third quarter 2021
- Guidance assumes no additional business acquisitions
- Guidance assumes no additional restructurings
- Guidance assumes no additional legal settlements are concluded
- Continued investments in Prime membership benefits, such as faster shipping speeds and unique benefits
Challenges Ahead
- Net sales guidance anticipates an unfavorable impact of approximately 390 basis points from foreign exchange rates
- Operating income is expected to be lower compared to third quarter 2021
- Uncertainty regarding the impacts of the COVID-19 pandemic
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...