Amazon reports huge profit in second quarter

Amazon reported a huge beat on profits but a narrow miss on revenue for its second-quarter earnings on Thursday.

Amazon stock is up roughly 3 percent in extended trading.

Here are the most important numbers:

– EPS: $5.07 vs. $2.50, as estimated, according to Thomson Reuters.

– Revenue: $52.9 billion vs. $53.41 billion, as estimated, according to Thomson Reuters

– AWS revenue: $6.1 billion vs. $6 billion, as estimated, according to FactSet

Amazon’s net income saw a whopping twelve-fold increase from the year-ago period, to a record $2.5 billion, marking the third consecutive quarter of surpassing $1 billion in profits. Amazon’s quarterly profit topped the $1 billion threshold for the first time in the fourth quarter of 2017.

Amazon CFO Brian Olsavsky said in a conference call that a “big contributor” to the greater profits was its “higher-profitability” businesses, like cloud and advertising. He also said increased efficiency in warehouses and data centers helped expand its profitability.

Despite the increased competition from Microsoft and Google, Amazon’s cloud service re-accelerated its sales growth to 49 percent year-over-year, generating $6.1 billion in sales. That’s just 11 percent of Amazon’s total sales, but its operating income of $1.6 billion accounted for 55 percent of the total.

Amazon’s “other” revenue, which is mostly comprised of advertising sales, came in at $2.2 billion, up 132 percent from last year. This is the second-straight quarter of surpassing $2 billion in advertising revenue.

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