Did Amazon Drop the Ball in the Second Quarter?
Amazon (NASDAQ:AMZN) reported second-quarter financial results after the bell on Thursday that came in below expectations. Net sales increased 22 percent on the year to $15.70 billion, just shy of the average analyst estimate of $15.73 billion. The big whiff was earnings, which fell to a loss of 2 cents per share against expectations for a gain of 5 centers per share.
Operating cash flow for the trailing 12-month period increased 41 percent to $4.53 billion. However, free cash flow declined 76 percent for the same period to $265 million. This is largely due to cash outflows for office space in Seattle worth about $1.4 billion.
Looking ahead, Amazon is guiding third-quarter net sales in a range between $15.45 billion and $17.15 billion, a year-over-year increase of 12 percent and 24 percent, respectively. Losses from operations are expected to fall in a range between $440 million and $65 million.
Shares closed the regular session up 1.49 percent at $303.40 per share but fell as much as 2 percent in post-market trading.