Amazon (NASDAQ:AMZN) reported strong second-quarter earnings that exceeded analyst expectations, but the company's stock dropped 8% intra-day today due to weaker-than-anticipated guidance for the upcoming third quarter.
For Q2, Amazon posted adjusted earnings per share of $1.26, significantly beating the analyst estimate of $1.03. Revenue for the quarter was $148.0 billion, slightly below the Street estimate of $148.68 billion but reflecting a 10% year-over-year increase from $134.4 billion in the same period last year.
However, Amazon's third-quarter revenue guidance of $154-158.5 billion fell short of analyst expectations of $158.2 billion, contributing to the stock's decline.
Amazon President and CEO Andy Jassy emphasized the company's progress, particularly noting the continued growth in Amazon Web Services (AWS). AWS reported sales of $26.3 billion, up 19% year-over-year, showcasing its strength within the company's portfolio. The North America segment saw a 9% increase in revenue to $90.0 billion, while the International segment grew by 7% to $31.7 billion, or 10% when excluding foreign exchange impacts.
Amazon's operating income more than doubled to $14.7 billion, compared to $7.7 billion in the second quarter of 2023, highlighting significant improvements in profitability.