Amazon Revenues Gain But Loss Larger Than Expected

For its second quarter ended June 30, Amazon.com, Inc. posted a net loss of $126 million, or 27 cents per diluted share, versus a net loss of $7 million, or two cents per diluted share, in the 2013 period. Net sales increased 23% to $19.34 billion from last year’s second quarter and 22% excluding the $237 million favorable impact from year-over-year changes in foreign exchange rates throughout the latest completed period.

Revenues matched a published Thomson Reuter’s analyst estimate but earnings per diluted share missed by 12 cents.

Operating loss was $15 million in the second quarter compared with operating income of $79 million in 2013 period. The favorable impact on operating loss from foreign exchange rate changes in the quarter was $31 million, according to Amazon.com.

“We continue working hard on making the Amazon customer experience better and better,” said Jeff Bezos, founder and CEO of Amazon.com. “We’ve recently introduced Sunday delivery coverage to 25% of the U.S. population, launched European cross-border Two-Day Delivery for Prime, launched Prime Music with over one million songs, created three original kids TV series, added world-class parental controls to Fire TV with FreeTime, and launched Kindle Unlimited, an eBook subscription service. For our AWS customers we launched Amazon Zocalo, T2 instances, an SSD-backed EBS volume, Amazon Cognito, Amazon Mobile Analytics, and the AWS Mobile SDK, and we substantially reduced prices. And today customers all over the U.S. will begin receiving their new Fire phones— including Firefly, Dynamic Perspective, and one full year of Prime— we can’t wait to get them in customers’ hands.”


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