Amazon reported second quarter 2022 revenue growth of 7%, but miss on earnings
Amazon reported net sales increased 7% to $121.2 billion in the second quarter, compared with $113.1 billion in the second quarter of 2021, excluding the $3.6 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 10% compared with second quarter 2021.
Operating income decreased to $3.3 billion, compared with $7.7 billion in the second quarter of 2021 while the net loss was $2.0 billion, or $0.20 per diluted share, compared with net income of $7.8 billion, or $0.76 per diluted share, in second quarter 2021.
The second quarter 2022 net loss includes a pre-tax valuation loss of $3.9 billion included in non-operating expenses from stock investment in Rivian Automotive, Inc.
Operating cash flow decreased 40% to $35.6 billion for the trailing twelve months, compared with $59.3 billion for the trailing twelve months ended June 30, 2021.
Amazon shares rose more than 13% after the closing session yesterday.
• Amazon Prime members worldwide shopped more and saved more this Prime Day than any other Prime Day event, purchasing more than 300 million items and saving more than $1.7 billion. On July 12 and July 13, Prime members worldwide purchased more than 100,000 items per minute
• Amazon continued to expand its grocery store footprint by opening 12 Amazon Fresh stores across the U.S. and the UK, and introduced new innovations to improve the shopping experience for customers
“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 Andy Jassy, Amazon CEO.
Third Quarter 2022 Guidance
• Net sales are expected to be between $125.0 billion and $130.0 billion, or to grow between 13% and 17% compared with third quarter 2021. This guidance anticipates an unfavorable impact of approximately 390 basis points from foreign exchange rates.
• Operating income is expected to be between $0 and $3.5 billion, compared with $4.9 billion in third quarter 2021.