Amazon Profit Up, Tops View - Update

(RTTNews) - Amazon.com Inc. (AMZN) Thursday reported an increase in profit for the second quarter, driven largely by revenue growth, especially at Amazon Web services. The online retailer' profit and revenues for the quarter trumped Wall Street estimates.

Seattle, Washington-based Amazon reported second-quarter profit of $857 million or $1.78 per share, up from $92 million or $0.19 per share last year. Analysts polled by Thomson Reuters expected earnings of $1.11 per share for the quarter. Analysts' estimates typically exclude special items.

Amazon's sales for the quarter jumped 31 percent to $30.40 billion from $23.19 billion a year ago. Analysts had a consensus revenue estimate of $29.55 billion for the quarter.

Sales from North America jumped 28 percent to $17.67 billion from last year, while international sales rose 30 percent to $9.84 billion. Meanwhile, revenues of Amazon Web Services, Amazon's cloud service division, surged 58 percent to $2.89 billion.

Total operating expenses for the quarter rose to $29.12 billion from $22.72 billion last year. Amazon's operating costs continues rise as the company spends heavily on its online infrastructure and other projects. Investors have been somewhat tolerant of its losses as Amazon is perceived to be using its cash to prop up long-term growth.

Looking forward to the third quarter, the company expects sales of $31.0 billion to $33.5 billion. Analysts currently estimate revenues of $31.63 billion.

AMZN closed Thursday's trading at $752.61, up $15.94 or 2.16%, on the Nasdaq. The stock further rose $10.60 or 1.41% in the after-hours trade.