- Amazon reports its second quarter earnings on Thursday after the bell.
- Wall Street expects a jump in sales, but a decline in profits compared to the previous year.
- Amazon is likely to see huge sales growth as more people shop online during the pandemic, but has posted small profits after pledging to spend all expected quarterly profits on COVID-related spending.
- You can find more stories on the Business Insider homepage.
Amazon announced its second quarter results Thursday after the bell.
The report should provide a better overview of how exactly the COVID-19 pandemic increased Amazon's return on sales as the company saw increased demand in the three months that ended in June. Investors are also hoping for more details on Amazon's COVID-related spending, which the company previously announced would exceed $ 4 billion for the quarter.
Wall Street analysts expect the following for the quarter:
- EPS (GAAP): $ 1.48, according to factSet consensus estimates, compared to $ 5.22 a year earlier
- Revenue: FactSet consensus estimates $ 81.4 billion, compared to $ 63.4 billion a year earlier
- AWS: FactSet consensus estimates $ 11.02 billion compared to $ 8.4 billion a year earlier
Amazon is widely regarded as one of the biggest beneficiaries of COVID-19. Home orders and closings across the country have prompted more people to shop online. Amazon Web Services, the retailer's cloud business, was also likely to see an increase due to the increasing use of apps by employees working from home.
In addition, investors believe that Amazon's higher-margin businesses such as advertising saw continued growth during the quarter, which helped to increase profitability and offset the planned $ 4 billion COVID-19 cost.
The report follows CEO Jeff Bezos' first appearance in Congress on Wednesday. Analysts could ask management about the antitrust review and the potential impact on Amazon's future business.