Amazon.com Inc. (NASDAQ:AMZN) late Thursday reported strong second-quarter revenue and profits as it benefited from the rapid acceleration in e-commerce demand due to efforts to control the spread of the novel coronavirus.
Demand for the Seattle-based company’s delivery and fulfillment services was reflected in its shipping costs, which hit an all-time record of $13.6 billion, a 68% year-over-year increase. The previous record was $12.9 billion in the fourth quarter of 2019. The fourth quarter includes the peak holiday buying period, traditionally Amazon’s busiest.
Amazon reported that net sales increased 40% to $88.9 billion in the second quarter, compared with $63.4 billion in second quarter 2019. Net sales rose 41% year-over-year, excluding a $582 million unfavorable impact in the 2020 quarter from changes in foreign exchange rates. Operating income increased $2.7 billion to $5.8 billion. Net income doubled to $5.2 billion, while diluted earnings per share doubled to $10.30.
Amazon projected third-quarter net sales of between $87 billion and $93 billion, a 24% to 33% year-on-year increase. Operating income is expected to fall within a range of $2 billion to $5 billion, the company said. Operating income in the 2019 quarter came in at $3.2 billion.
Amazon executives will hold an analyst call at 5:30 p.m. EDT to discuss the results.