Courtesy of Benzinga.
Amazon (NASDAQ: AMZN) reported its second-quarter earnings on Thursday. Shares of the company are down more than 11 percent..
Below are some key takeaways from its conference call:
Results:
• Trailing 12-month operating cash flow increased 18 percent to $5.33 billion.
• Trailing 12-month free cash flow increased to $1.04 billion.
• Trailing 12-month capital expenditures were $4.29 billion.
• Return on invested capital was 6 percent, up from 2 percent.
• The combination of common stock and stock-based awards outstanding was 480 million shares compared with 474 million one year ago.
• Worldwide revenue grew 23 percent to $19.34 billion or 22 percent excluding the $237 million favorable impact from year-over-year changes in foreign exchange rates.
• Media revenue increased to $4.84 billion, up 10 percent, or 9 percent excluding foreign exchange.
• Active customer accounts exceeded 250 million. Worldwide active seller accounts were more than 2 million. Seller units represented 41 percent of paid units.
• Cost of sales was $13.4 billion or 69.3 percent of revenue compared with 71.4 percent.
• In the International segment revenue grew 18 percent to $7.34 billion. Excluding the $246 million year-over-year favorable foreign exchange impact, revenue growth was 14 percent.
• Media revenue grew 7 percent to $2.38 billion or 4 percent excluding foreign exchange.
• Our income tax expense was $94 million.
Guidance:
• For Q3 2014, we expect net sales of between $19.7 billion and $21.5 billion or growth of between 15 percent and 26 percent.
• This guidance anticipates approximately 120 basis points of favorable impact from foreign exchange rates.
• GAAP operating loss to be between $810 million loss and a $410 million loss compared to a $25 million loss in third quarter of 2013.
• This includes approximately $410 million for stock-based compensation amortization of intangible assets.
• We remain heads-down focused on driving a better customer experience through price, selection, and convenience.
• We believe putting customers first is the only reliable way to create lasting value for shareholders.
