Amazon Releases Fresh Guidance

Amazon (AMZN) unveiled guidance for its third quarter after markets closed on Thursday, as the e-commerce company posted better-than-expected revenue for its second quarter as product and service sales continued to advance.

Seattle-headquartered Amazon generated revenue of $63.40 billion in the three months ended June 30, up 20% from the corresponding quarter of the prior year. This was also comfortably ahead of the consensus estimate of analysts polled by Capital IQ for $62.60 billion.

Total product sales surged to $35.86 billion from $31.86 billion and net service sales rose to $27.55 billion from $21.02 billion.

Diluted earnings per share came in at $5.22, up from $5.07 a year earlier but below the Street’s forecast for $5.58 per share.

“Customers are responding to Prime’s move to one-day delivery — we’ve received a lot of positive feedback and seen accelerating sales growth,” Jeff Bezos, chief executive of Amazon, said. “Free one-day delivery is now available to Prime members on more than ten million items, and we’re just getting started.”

The company said that Prime Day– which took place over the two days of July 15 and July 16 — was the largest shopping event in Amazon history. Over the two days, Amazon said that sales surpassed the previous Black Friday and Cyber Monday combined.

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