Amazon closes a second quarter of 2022 with very positive results. The company has reported revenue of $121.23 billion, while analysts forecast just $119.09 billion.. Something surprising at this time when most companies are presenting less than optimistic results.
The growth in its income has been 7%. However, one of the business lines that has shown the most growth in sales has been Amazon Web Services with 19,700 million compared to 19,560 expected (33%). Another line of business of the company founded by Jeff Bezos that has had better results is advertising; but this has generated reluctance among analysts seeing the bad data that other companies in the sector have had.
“Despite continued inflationary pressures in fuel, energy and transportation costs, we are making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network.”, said Andy Jassy, CEO of Amazon. “We’re also seeing revenue accelerate as we continue to improve Prime for members, invest in faster shipping speeds, and add unique benefits like free Grubhub delivery for a year, exclusive access to the NFL, and the launch of the highly anticipated The Lord of the Rings: The Rings of Power series on September 2”.
The line of business worst results it has had in this quarter has been that of international salesprobably due to the change in the value of currencies and inflation.
The net loss was $2 billion in the second quarter, which means a drop of $0.20 per share. Among the losses is his investment in Rivian Automotive, an operation that would have made a profit of 1.9 billion dollars.
Outlook 2022
Amazon has decided to change its outlook for 2022:
- Net sales are expected to be between $125 billion and $130 billion, or grow 13% to 17% compared to the third quarter of 2021. This guidance anticipates an unfavorable impact of approximately 390 basis points from foreign exchange rates.
- Operating income is expected to be between $0 million and $3.5 billion, compared to $4.9 billion in the third quarter of 2021.
- This guidance assumes, among other things, that no additional business acquisitions, restructurings or legal agreements are concluded.