Amazon.com Inc
Q2 2024 Earnings
Did AMZN Beat Earnings? Q2 2024 Results
Amazon delivered a standout second quarter, posting earnings per diluted share of $1.26, well ahead of the $1.03 consensus estimate for a 22.33% beat, even as revenue of $147.98 billion edged just below the $148.56 billion Wall Street expected despite climbing 10.1% year-over-year. The clearest engine behind the profit surge was Amazon Web Services, which reaccelerated to 19% year-over-year growth, generating $26.28 billion in revenue and a 35.5% operating margin, up sharply from 24.2% a year ago, as demand for generative AI infrastructure drove both volume and pricing power. Operating income nearly doubled to $14.67 billion, lifting overall operating margin to 9.9% from 5.7% in the year-ago period, while net income reached $13.48 billion. With observers noting Amazon's forward valuation has become increasingly competitive relative to other large-cap peers, the company enters Q3 2024 guiding for net sales of $154.00 billion to $158.50 billion and operating income of $11.50 billion to $15.00 billion, signaling continued confidence in its trajectory even as foreign exchange presents a modest headwind.
- AWS growth reaccelerated to 19% YoY driven by cloud migration and generative AI demand
- Operating margin expanded to 9.9% from 5.7% YoY reflecting cost efficiency improvements
- Advertising services grew 20% YoY to $12.8 billion
- Third-party seller services grew 12% to $36.2 billion
- International segment swung to operating profit of $273 million from a $895 million loss
- Trailing twelve-month operating cash flow surged 75% to $108 billion
“We're continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth. As companies continue to modernize their infrastructure and move to the cloud, while also leveraging new Generative AI opportunities, AWS continues to be customers' top choice as we have much broader functionality, superior security and operational performance, a larger partner ecosystem, and AI capabilities like SageMaker for model builders, Bedrock for those leveraging frontier models, Trainium for those where the cost of compute for training and inference matters, and Q for those wanting the most capable GenAI assistant for not just coding, but also software development and business integration.”
Amazon CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2024, Amazon expects net sales between $154.0 billion and $158.5 billion, representing 8% to 11% growth year-over-year, with an anticipated unfavorable impact of approximately 90 basis points from foreign exchange rates. Operating income is expected between $11.5 billion and $15.0 billion, compared with $11.2 billion in Q3 2023. Guidance assumes no additional business acquisitions, restructurings, or legal settlements.
AMZN YoY Financials
AMZN Revenue by Segment
AMZN Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.