generated $ 88.9 billion in net sales in the second quarter, 40 percent more than in the same period last year. Net income also doubled to $ 5.24 billion, or $ 10.50 per share. The company thereby clearly exceeds Wall Street’s expectations. Their analysts had assumed a profit of $ 1.46 per share on earnings of $ 81.56 billion.
After Amazon had already closed yesterday’s trading day with a gain of 0.6 percent, the company’s share rose even after the market closed. At the end of after-hours trading, Amazon stock was trading at $ 3204.6, up 5 percent.
Trading business improved 42 percent to $ 78.1 billion. The North American market accounted for $ 55.43 billion with an operating profit of $ 2.1 billion. International trade brought in $ 22.67 billion, with an operating surplus of $ 345 million.
AWS, however, reported a 29 percent increase in sales. The cloud division generated $ 3.37 billion in operating profit from $ 10.81 billion, which in turn corresponds to 36 percent of net income.
Amazon CEO Jeff Bezos described the past three months as a “very unusual quarter”. The COVID-19 pandemic caused an additional $ 4 billion in costs. In addition, Amazon has created 175,000 new jobs since March.
CFO Brian Olsavsky justified the high operating earnings of the trading business for Amazon with a high demand from consumers who would also have bought more profitable products. He also announced Amazon Prime Day for the fourth quarter.
Olsavsky also specified the additional costs caused by the corona crisis. Most of the $ 4 billion was spent on higher wages and bonus payments. However, additional costs were also spent on changes to work processes, for example to be able to comply with social distancing. Protective equipment for employees and additional hygiene measures were also paid for with the money.
In the current third quarter, Amazon now anticipates sales of between $ 87 billion and $ 93 billion. Operating income is expected to reach at least $ 2 billion and grow to $ 5 billion. The company estimates that the corona crisis will spend more than $ 2 billion.