5:30PM New York – Amazon jumps 13% in the after hours trading sharply higher earnings.

Amazon.com Inc reported second quarter revenue increased 35%, net earnings jumped 257%, and earnings per share soared 280%.

For the quarter the revenue was $2.89 billon compared to $2.14 billion a year ago. North American sales rose 38% and international sales increased 31% and excluding currency impact increased 26%. The international sales include sales in UK, France, Germany, China, and Japan. Worldwide net sales at Amazon.com (AMZN: chart) increased 33% excluding the impact of the currency.

Electronic sales in the quarter consisted 34% of sales from 29% of sales a year ago. Electronics and general merchandise sales rose 55% in the quarter lifting its total contribution in the total sales. Pre-orders of 2.2 million copies of Harry Potter and Deathly Hallows drove traffic on the various sites operated by Amazon.

Operating cash flow in the quarter jumped to $299 million for $130 million. Common stocks outstanding and plus options for stock awards decreased to 435 million in the quarter from 443 million a year ago. The company spent $180 million to purchase its stock in the quarter, a decline from $232 million a year ago. Cash and cash equivalent at the end of the quarter increased to $1.004 billion from $683 million a year ago.

For the third quarter the company expects net sales to be between $3 billion and $3.175 billion or a growth of between 30% and 38% from a year ago. Net sales for the year are estimated to be between $13.8 billon and $14.3 billion or a growth between 29% and 34% from the year 2006.

Gross profit in the quarter held steady from a year ago near 24% but net profit margin jumped to 2.7% from 1.2% a year ago.

Breakdown between domestic and international sales held steady with the ratio of 55% to 45% in the quarter from a year ago. International sales generated higher profit margin in the quarter as it did a year ago.