Friday, July 24, 2015

Amazon results beat expectations and trigger action – Financial Journal

Ainhoa ​​Murga

” Amazon is proving that if you want to deliver benefits, can “say the experts.

yesterday Amazon pleasantly surprised investors by reporting a profit of US $ 92 million, or US $ 0.19 per share, in the second quarter, beating market estimates of US $ 0.14 and showing that when it focuses on investment, online retailer knows how to make money. In the same period of 2014, the company recorded losses of US $ 126 million, appropriated Reuters.

Revenue rose 20% to US $ 23,200 million, surpassing the estimate of US $ 22,400 million. After the report, the share of Amazon soared 19% in extended trading after the close of markets.

The CEO Jeff Bezos, is driving the company he founded two decades beyond selling books, electronics and household as the business matures. Although his focus has been reinvesting profits in growth, sometimes bid to reduce expenditure to show that it can be profitable. Operating expenses grew slower than sales, rising 17% to US $ 22,700 million.

“They are showing investors that if they want to deliver benefits can,” he told Bloomberg Michael Pachter, an analyst at Wedbush Securities. “Amazon is an online retailer with a dominant position in the market is on track to become one of the largest retailers in the world.”

Amazon is also investing to attract more customers as competition intensifies, with Walmart launching a membership service to challenge their “Amazon Prime”.

The division of cloud computing, with clients such as Netflix and Pinterest, recorded sales of US $ 1,820 million, 81% more than a year ago. Amazon estimates that third quarter revenues will be between US $ 23,300 million and US $ 25,500 million, compared to an average of US $ 23,900 million analysts

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