The stock price of Amazon.com, Inc. (NASDAQ:AMZN) after releasing strong financial results for the second quarter. The shares of the e-commerce giant were trading $564.52, up by 17% during the extended trading around 6:00 in the afternoon in New York.
Amazon.com financial results
Amazon.com reported a surprising net profit of $92 million or $0.19 per share for the second quarter. The e-commerce giant posted a net loss of $126 million or $0.27 per share in the same period a year earlier.
According the e-commerce giant, its net sales increased 20% to $23.18 billion from $19.34 billion. Its operating income was $64 million.
Amazon.com said its operating cash flow climbed 69% to $8.98 billion and free cash flow increased to $4.37 billion for the trailing twelve months ended June 30, 2015.
In a statement, Amazon.com founder and CEO Jeff Bezos emphasized that the company’s teams are working hard for customers. He also enumerated some of the new products and services of the company including the Amazon Business, Prime free same day, AWS Educate and others.
During the company’s earnings call, Amazon.com CFO Brian Olsavsky said, “We have competition for 20 years now from some of the biggest names in retail and other areas. We’re used to competition, but we focus on the customer … We’re happy with the results.”
Michael Pachter, an analyst at Wedbush Securities told Bloomberg, “They are showing investors that if they want to deliver profits, they can,” said Michael Pachter. Amazon is a dominant online retailer, well on its way to becoming one of the world’s largest retailers.”
For the third quarter, Amazon.com expected to achieve net sales in the range of $13.3 billion to $25.2 billion. The company expected its operating income (loss) to be around $(480) million to $70 million.
According to the company its projection included approximately $580 million for stock-based compensation and amortization of intangible assets, and the assumption of no additional acquisitions, investments, restructurings or legal settlements among others.