Amazon 2Q profit falls on rising expenses
Posted: 5:01 pm Tue, July 26, 2011
SAN FRANCISCO — Amazon.com Inc.’s second-quarter revenue jumped 51 percent, helped by higher merchandise sales, while its profit fell as the online retailer’s operating expenses rose.
The results, issued late Tuesday, easily beat analyst expectations.
For the quarter that ended June 30, revenue rose to $9.91 billion from $6.57 billion last year. The company’s electronics and general merchandise revenue rose 69 percent to $5.89 billion, while sales of books, CDs, DVDs and other media rose 27 percent to $3.66 billion.
Amazon CEO Jeff Bezos said in a statement that “low prices, expanding selection and innovation” drove the company’s second-quarter growth.
But the company’s net income declined as Amazon’s operating expenses rose 54 percent to $9.71 billion.
For the quarter that ended June 30, Amazon said late Tuesday it earned $191 million, or 41 cents per share, compared with $207 million, or 45 cents per share, in the year-ago quarter.
Analysts polled by FactSet were expecting a profit of 34 cents per share on $9.37 billion in revenue.
For the current quarter, Amazon forecast revenue of $10.3 billion to $11.1 billion, the top of which is well above the $10.40 billion analysts have been expecting.
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