Amazon (AMZN) Q2 2022 revenue guidance well below expectations
Within Amazon's Q1 2022 earnings report, the company offers uninspiring guidance for the next quarter.
In the same way that it’s customary for companies to share their earnings report at the end of every quarter, it’s also customary for them to provide guidance, which informs shareholders of what the company expects its financial performance to look like in the upcoming quarter, allowing them to make informed decisions. Following the release of Amazon’s (AMZN) Q1 2022 earnings report, the company’s guidance for Q2 is below expectations.
It’s inside of Amazon’s Q1 2022 earnings report that the company provided guidance for Q2 2022. The following bullet points were provided within the report.
- Net sales are expected to be between $116.0 billion and $121.0 billion, or to grow between 3% and 7% compared with second quarter 2021. This guidance anticipates an unfavorable impact of approximately 200 basis points from foreign exchange rates.
- Operating income (loss) is expected to be between $(1.0) billion and $3.0 billion, compared with $7.7 billion in second quarter 2021.
- This guidance assumes that Prime Day occurs in third quarter 2022.
- This guidance assumes, among other things, that no additional business acquisitions, restructurings, or legal settlements are concluded.
This guidance comes in below Wall Street expectations, which was anticipating $125 billion in revenue for Amazon in the upcoming quarter. The retailer/entertainment company is also predicting a loss in Q3 2022, which is unexpected.
Amazon (AMZN) stock was down 11.7 percent in after-hours trading following the release of its Q1 2022 earnings report, as we can see on Yahoo Finance’s stock quote.
With Amazon’s (AMZN) guidance for the upcoming quarter below expectations, it will be interesting to see how it performs in relation to those expectations. For more on Amazon (AMZN) and the rest of the financial world as it relates to technology and entertainment, stick with Shacknews.
Donovan Erskine posted a new article, Amazon (AMZN) Q2 2022 revenue guidance well below expectations