An Impressive Result for Amazon’s 2Q15 Earnings



Amazon’s 2Q15 earnings

Amazon (AMZN) surprised investors and analysts with its strong 2Q15 earnings, released on July 23, 2015. The results exceeded analysts’ expectations by reporting diluted earnings per share of $0.19 on net sales of $23.18 billion. This is a 20% year-over-year increase in revenue for 2Q15.

Amazon beat analyst estimates of a loss of $0.14 per share on sales of $22.37 billion. Amazon’s own guidance was for a revenue range of $20.6 billion–$22.8 billion, which translates to growth of 7%–18%.

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The Internet industry announces strong earnings

Amazon expected its revenue to grow at a year-over-year rate of 7%–18% in 2Q15. The company expected currency headwinds to affect revenue growth by up to 7.5% in 2Q15. However, the earnings season in the Internet segment of the technology sector has started off pretty well.

Google and eBay (EBAY) announced their 2Q15 earnings, both with strong results. Google reported an 11% revenue increase, and eBay upgraded its guidance for 2015. Google is predicting annual revenue growth of 3%, and eBay is predicting 5% annual revenue growth.

Facebook (FB) and Twitter (TWTR) announced their 2Q15 earnings on July 28 and July 29, respectively. Facebook reported a 39% increase in revenues for the quarter ending June 30, 2015. Twitter reported revenue of $502 million, which is an increase of 61% over the same period last year.

You can get exposure to Amazon by investing in the Consumer Discretionary Select Sector SPDR ETF (XLY), which has 6.1% exposure to the company.


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