Amazon Web Services is the Driver Behind Another Great Amazon Quarter

Amazon.com (Nasdaq: AMZN) reported earnings after the market closed on Thursday and it was another great quarter for the internet giant:

  • Net sales of $51.0 billion, up from $35.7 billion (43% increase year-over-year)
  • Operating income rose to $1.9 billion, up from $1.0 billion (92% increase YOY)
  • Earnings of $3.27 per share, up from $1.48 per share (121% increase YOY)

If you’ll recall from earlier this week, I was primarily concerned with the performance of Amazon Web Service (AWS), as its high-margin business line would help overcome the margin shortcomings felt in the retail side of things. AWS did not disappoint, with total sales during the quarter of $5.4 billion, or just over 10% of total sales. Continue reading

Starbucks Sees Record Revenue, but Reiterates Full-Year Guidance

Starbucks (Nasdaq: SBUX) reported earnings after the market closed on Thursday and it was a record-breaking quarter for them:

  • Record net revenues of $6.0 billion, up from $5.3 billion (14% increase year-over-year)
  • Net income rose to $660.1 million, up from $652.8 million (1.1% increase YOY)
  • Earnings of $0.47 per share, up from $0.45 per share (4.4% increase YOY)

If you’ll recall from earlier this week, I was primarily concerned with the performance of Starbucks’ food business, and unfortunately, the food business isn’t broken out specifically in the results. Instead, I will focus on the growth by segment, specifically how well Starbucks is growing outside of the “Americas,” which might be more important when looking at the long-term prospects of the company. Continue reading

PayPal Results Driven by Strong Customer & Transaction Growth

PayPal Holdings (Nasdaq: PYPL) reported earnings (PDF) after the market closed on Wednesday and it was a pretty good quarter for them:

  • Net operating revenue of $3.69 billion, up from $2.98 billion (24% increase year-over-year)
  • Net income rose to $511 million, up from $384 million (33% increase YOY)
  • Earnings of $0.42 per share, up from $0.32 per share (33% increase YOY)

If you’ll recall from earlier this week, PayPal is a part of my “War on Cash” basket with Mastercard (NYSE: MA), Visa (NYSE: V), and Square (NYSE: SQ). All of these stocks received a boost in after-market trading on Wednesday because of these results from PayPal and Visa (which I wrote about here), so I’m sure this trend will continue when the others release earnings next week. Continue reading

Visa’s Strong Performance Boosts Long-Term Potential

Visa (NYSE: V) reported earnings (PDF) after the market closed on Wednesday and it was a pretty good quarter for them:

  • Net operating revenue of $5.07 billion, up from $4.48 billion (13% increase year-over-year))
  • Adjusted net income rose to $2.61 billion, up from $2.1 billion (26% increase YOY)*
  • Earnings of $1.11 per share, up from $0.86 per share (30% increase YOY)*

*During the same quarter last year, Visa had two special items relating to the legal entity reorganization of Visa Europe and the formation of the Visa Foundation, so I have presented the net income and EPS values as if they weren’t included because the company has stated that they are not reoccurring.

If you’ll recall from earlier this week, Visa is a part of my “War on Cash” basket with Mastercard (NYSE: MA), PayPal Holdings (Nasdaq: PYPL), and Square (NYSE: SQ). These stocks received a boost in after-market trading on Wednesday because of these results from Visa and PayPal (which I wrote about here), so I’m sure this trend will continue when the others release earnings next week. Continue reading