Amazon Q2 Revenues Miss Street View, Outlook Weak; Shares Down 7%

(RTTNews) - Shares of Amazon.com Inc. (AMZN) slipped nearly 7% in extended trading session on Thursday after the online retail giant's second-quarter revenues fell short of estimates, reflecting slow down of online sales as brick-and-mortar stores reopened. The company also issued a weak revenue outlook for the third quarter.

Seattle, Washington-based Amazon's second-quarter profit jumped to $7.78 billion or $15.12 per share from $5.24 billion or $10.30 per share last year. On average, 37 analysts polled by Thomson Reuters expected earnings of $12.22 per share for the quarter.

Amazon's sales for the quarter jumped 27% to $113.08 billion from $88.91 billion last year. Analysts had a consensus revenue estimate of $115.07 billion for the quarter.

Sales from North America jumped 22% to $67.55 billion from $55.44 billion last year, while international sales rose 36% to $30.72 billion from $22.67 billion. Meanwhile, revenues of Amazon Web Services, Amazon's cloud service division, jumped 37 percent to $14.81 billion from $10.81 billion.

In the past few quarters, the online retail giant had reaped benefits of the COVID-19 pandemic as more and more customers preferred to shop on its e-commerce platform. However, sales at brick-and-mortar stores have picked up recently as restrictions have been lifted and more and more people are getting vaccinated.

Looking forward to the third quarter, the company expects sales of $106.0 billion to $112.0 billion. Analysts currently estimate revenues of $118.62 billion.

AMZN closed Thursday's trading at $3,599.92, down $30.40 or 0.84%, on the Nasdaq. The stock further dropped $241.15 or 6.70% in the after-hours trade.