- Amazon reports its second quarter earnings on Thursday after the bell.
- Wall Street expects a jump in revenue but a cut in profits from last year.
- Amazon likely saw a huge increase in sales, as more people shopped online during the pandemic, but could report thin profits after having pledged to spend all of its expected quarterly profits on COVID-related expenses.
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Amazon is reporting its second quarter earnings results on Thursday after the bell.
The report should give a better look into how exactly the COVID-19 pandemic boosted Amazon’s top-line, as the company saw increased demand during the three months ended in June. Investors are also hoping to get more details on Amazon’s COVID-related spending, which the company previously said would top $4 billion for the quarter.
Here’s what Wall Street analysts are expecting for the quarter:
- EPS (GAAP): $1.48, according to consensus estimates compiled by FactSet, vs. $5.22 last year
- Revenue: $81.4 billion, according to consensus estimates compiled by FactSet, vs. $63.4 billion last year
- AWS: $11.02 billion, according to consensus estimates compiled by FactSet, vs. $8.4 billion last year
Amazon is widely seen as one of the biggest beneficiaries of COVID-19. Stay-at-home orders and store closures across the country have prompted more people to shop online. Amazon Web Services, the retailer’s cloud business, also likely saw a boost due to the increased use of apps by people working from home.
On top of that, investors believe Amazon’s higher margin businesses, like advertising, saw continued growth during the quarter, helping expand its profitability and balance the $4 billion in planned COVID-19 related expenses.
The report follows CEO Jeff Bezos’s first-ever Congressional hearing appearance on Wednesday. Analysts could ask the company’s leadership about the antitrust scrutiny and how it could potentially affect Amazon’s business going forward.
Amazon reports second quarter earnings after the bell (AMZN)