NEW YORK(AP)
Amazon.com Inc. doesn't seem to be bothered by high gas
prices or the sputtering U.S. economy.
On Wednesday, the Internet retailer reported second-quarter
earnings that more than doubled and easily topped analysts'
expectations. It also raised its full-year revenue projections.
The Seattle-based company's shares jumped $6.04, or 8.6
percent, to $76.58 in after-hours trading, after finishing regular
trading up $2.57, or 3.8 percent, at $70.54.
Chief Executive Jeff Bezos said Amazon suspects increased fuel
prices may give it a "relative advantage" over other
retailers.
"Even just driving 10 miles these days is a few dollars
worth of gasoline," he said during a conference call with
analysts. "And consumers, we suspect, are beginning to take
that into account and try to do trip consolidation. So our free
shipping offers and Amazon Prime are clearly of even more value to
customers under that set of circumstances."
Sales were strong in several sections of Amazon's massive
marketplace, and the company was helped substantially by a $53
million non-cash gain from the sale of European DVD rental
assets.
For the quarter that ended June 30, Amazon earned $158 million,
or 37 cents per share. Amazon earned $78 million, or 19 cents per
share, in the same quarter last year.
The company's revenue climbed 41 percent to $4.06 billion,
including a 35 percent leap in North American sales. The number of
total active customer accounts also jumped, rising 18 percent to
more than 81 million.
Analysts polled by Thomson Financial had expected earnings of 26
cents per share on $3.96 billion in revenue in the quarter.
Sales of items such as books, CDs and DVDs rose 31 percent to
$2.41 billion in the second quarter, while electronics and other
general merchandise sales soared 58 percent to $1.53 billion.
One closely watched measure, the company's net shipping
cost, climbed to $128 million from $75 million a year earlier.
But Amazon also noted that revenue from shipping _ which
includes earnings from its membership-based two-day shipping
program, Amazon Prime, and its third-party shipping program,
Fulfillment by Amazon _ rose to $186 million from $152 million.
The company generally offers customers free standard shipping on
items that cost more than $25.
Dan Geiman, an analyst at McAdams Wright Ragen called
Amazon's quarter a little better than expectations, saying that
by his calculations the Web retailer would have earned 26 cents per
share when excluding the European DVD asset gain.
"The positive, certainly, is they are bucking the broader
macro trends. They're continuing to show that," he
said.
And Jim Friedland, an analyst with Cowen and Co., said the
quarter was solid across the board.
"Certainly given all the blood on the street, this is
definitely a positive earnings," he said.
For the current third quarter, Amazon predicted sales of $4.20
billion to $4.43 billion; analysts had been looking for $4.23
billion in revenue.
The company increased its sales forecast for the rest of the
year to a range of $19.35 billion to $20.10 billion. Analysts were
expecting $19.60 billion.
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