Amazon earnings: massive beat sends share up 7% after hours
Ecommerce giant Amazon massively outperformed analysts’ expectations in the third quarter, as strong growth in North America and the company’s cloud computing segment made up for high inward investment. The third quarter usually sees smaller profit for Amazon, as the company invests heavily at this time of year. However, this year, the company more-than compensated. The company also committed itself to a positive outlook for the fourth quarter, which, as holidays approach, is consistently Amazon’s busiest period.
Amazon’s shares soar on the back of a massive earnings and revenue beat!
SOURCE: Yahoo Finance
Amazon reported total revenue for the quarter of $43.7 billion against analysts’ estimates of $42.14 billion. This is a 34% increase against the same period in the previous year. It also saw a huge beat on earnings, which came in at 52¢ per share, rather than Wall Street’s prediction of 3¢ per share.
A stand out performer in the third quarter was Amazon Web Services, the company’s cloud computing segment. It saw revenues of $4.58 billion against predictions of $4.51 billion – an incredible 42% rise in sales against the year-ago quarter. It also saw some early success from its acquisition of Whole Foods, which bought in $1.3 billion – for the first time, a concrete report of what Amazon’s selling in physical stores.
The company, which added 160,000 employees in the third quarter (67,000 of which joined the company through its Whole Foods acquisition), is now looking towards its busy fourth quarter. It said it expects to bring in revenue between $56.0 billion and $60.5 billion – broadly in line with analysts’ estimates of $58.9 billion.
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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