Amazon Releases Impressive Second Quarter Sales, Making It Worth A Whole Lot More Than Wal-Mart
Amazon.com Inc. has recently released its second quarter sales, and the results are quite impressive. The said quarter reflected sales ending last June 30. The company revealed that its net sales went up by an astounding 20% to bring its total second quarter net sales to $23.18 billion. This is compared with its second quarter 2014 net sales of just $19.34 billion.
Meanwhile, the company’s free cash flow has also gone up to $4.37 billion for the trailing twelve months. This is also a significant increase compared to its free cash flow of $1.04 billion during the twelve months trailing that ended last June 30, 2014.
At the same time, the company’s operating income is now at $464 million. This represents a significant recovery from Amazon’s operating loss during the second quarter of 2014 worth $15 million. In addition, Amazon’s net income for the second quarter is at $92 million or $0.19 per diluted share, compared to its 2014 second quarter net loss of $126 million or $0.27 per diluted share.
Following the release of the second quarter earnings results, The Wall Street Journal reports that Amazon’s (AMZN) stock price soared by 17% to $562.52 during after-hours trading, making worth a whole lot more than Wal-Mart Stores Inc. (WMT). Meanwhile, the current value of Amazon stock price is now $482.18 while Wal-Mart‘s is $72.51.
Amazon Founder and Chief Executive Officer Jeff Bezos seems not at all surprised by his company’s remarkable second quarter performance.
Bezos remarked, “The teams at Amazon have been working hard for customers.”
Moreover, he explained, “We unveiled Amazon Business, opened Amazon Mexico, launched Prime free same-day, rolled out our ninth Prime Now city, broke our Black Friday record with the first-ever Prime Day, received 11 Emmy nominations for Transparent, debuted six new kids pilots, brought Echo to general availability, introduced the Alexa Skills Kit and Alexa Voice Service, opened FBA Small and Light, continued to double down on our fastest growing geography — India, launched 350 significant AWS features and services so far this year (ahead of last year’s pace), introduced AWS Educate, and entered into agreements for new solar and wind farms — enough to exceed our 2016 goal of 40% renewable energy.”
As for the near future, Amazon is expecting its net sales for the third quarter of 2015 to be anywhere between $23.3 billion and $25.5 billion, reflecting a growth of 13% to 24% when compared to the third quarter of 2014. The company believes it will either have an operating loss of $480 million or achieve an operating income of $70 million. Either result will give a relative improvement to its 2014 third quarter operating loss of $544 million.
Recently, Amazon has also announced that it is expanding its Amazon Home Services to 15 more areas including Atlanta, Boston, Chicago, Dallas-Fort Worth, Houston, Miami, Philadelphia, Phoenix, San Diego, San Jose and Washington D.C. Prior to this, the service was only available in New York City, Los Angeles, San Francisco and Seattle.