Amazon Plunges, Then Recovers After Q2 Results

Amazon.com

released its fiscal second-quarter earnings results after the closing bell on Thursday. The company reported net income of $7 million or $0.01 per share, from $191 million or $0.41 per share, in the year ago quarter. This missed analysts' consensus EPS estimates of $0.02. The results included a $65 million estimated net loss related to the acquisition and integration of Kiva Systems. Net sales in the quarter were up 29 percent to $12.83 billion. This compared to $9.91 billion in last year's corresponding quarter. On a constant currency basis, revenues rose 32 percent in the quarter. Wall Street analysts had consensus revenue estimates of $12.89 billion for the second-quarter. Looking ahead to the third-quarter, Amazon sees net sales between $12.9 billion and $14.3 billion. Operating losses are expected to be between $350 million to $50 million. Currently, analysts have consensus revenue estimates of $14.10 billion for the third-quarter. Amazon shares have whipsawed in Thursday's after hours trading session after the release of the company's Q3 guidance and Q2 results. Initially, the stock plunged, but it has since recovered. At last check, AMZN was just down a little more than 1 percent after falling more than 8 percent in the immediate aftermath of the company's earnings release.