Amazon.com has registered buoyant profits in the second quarter amid strong sales of books, music and electronics worldwide.
In the second quarter, the net earning surged to $78 million or 19 cents a share, from $22 million, or 5 cents a share during the same period last year. Revenue increased by 35 percent to $2.88 billion, compared to $2.14 billion a year earlier. Results beat analysts’ expectations by extracting $2.81 billion sales.
Worldwide sales of books, music and other media-category products grew 27 percent to $1.83 billion. Revenue from electronics and general merchandise improved 55% to $970 million.
Sales in the U.S. and Canada increased 38 percent to $1.6 billion. The company registered buoyant revenue surge in its U.K., German, Japanese, French and Chinese sites, where it increased by 31 percent to $1.28 billion, thanks to the weaker dollar.
The company’s revenue from third-party merchants increased to 30% of total unit sales on the site. Amazon’s spending to help third parties sell items on its site, storage and computing power for software programmers increased by 10 percent to $201 million, which depicts that Amazon is progressing constantly and adding more customers to it.
Amazon asserts that it has successfully added huge number of subscribers to its $79-per-year unlimited shipping membership program, but did not disclose a total.
Buoyant with the results, the retailer is confident for the current third quarter and expecting revenue between $3 billion to $3.18 billion. The company has also increased its forecast for the full fiscal year as it is hoping to earn $13.80 billion to $14.30 billion, earlier it expected only $13.4 billion to $14 billion.
Overwhelming results gave boost to Amazon’s shares, as prior to the quarterly result they were looming by $2.49, or 3.5%, but dramatically gained momentum as news hit the market. In an hour trading, company’s shares strengthen by $8.72 to $77.07.
Via: Mercurynews
