Amazon.com Inc
Q3 2024 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.41%.
Did AMZN Beat Earnings? Q3 2024 Results
Amazon delivered a blowout third quarter, posting earnings of $1.43 per diluted share against a consensus estimate of $1.14, a beat of 25.44%, as consolidated net sales climbed 11.0% year-over-year to $158.88 billion. The clearest engine behind the results was Amazon Web Services, which accelerated to 19% year-over-year growth with $27.45 billion in net sales and a 38.1% operating margin, contributing 60% of the company's total operating income of $17.41 billion; that figure itself rose 56% from a year ago, with the consolidated operating margin expanding to 11.0% from 7.8%. Net income grew 55% to $15.33 billion, while advertising services revenue rose 19% to $14.33 billion, reinforcing Amazon's growing share of digital ad spend at a time when rivals in retail and consumer electronics are navigating softer demand environments. Capital expenditures nearly doubled to $22.62 billion as the company deepened investment in AI infrastructure. Looking ahead, Amazon guided Q4 2024 net sales between $181.50 billion and $188.50 billion and operating income between $16.00 billion and $20.00 billion.
- AWS segment sales grew 19% YoY to $27.5 billion with operating margin expanding to 38.1%
- International segment swung to $1.3 billion operating income from a $95 million loss a year ago
- Advertising services revenue grew 19% YoY to $14.3 billion
- Consolidated operating margin expanded to 11.0% from 7.8% in Q3 2023
- Net income grew 55% YoY driven by operating leverage across all segments
- Third-party seller services grew 10% to $37.9 billion
- Worldwide paid units grew 12% YoY
“As we get into the holiday season, we're excited about what we have in store for customers. We kicked off the holiday season with our biggest-ever Prime Big Deal Days and the launch of an all-new Kindle lineup that is significantly outperforming our expectations; and there's so much more coming, from tens of millions of deals, to our NFL Black Friday game and Election Day coverage with Brian Williams on Prime Video, to over 100 new cloud infrastructure and AI capabilities that we'll share at AWS re:Invent the week after Thanksgiving.”
Amazon CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2024, Amazon expects net sales between $181.5 billion and $188.5 billion, representing growth of 7% to 11% compared with Q4 2023, with an anticipated unfavorable foreign exchange impact of approximately 10 basis points. Operating income is expected to be between $16.0 billion and $20.0 billion, compared with $13.2 billion in Q4 2023. The guidance assumes no additional business acquisitions, restructurings, or legal settlements.
AMZN YoY Financials
AMZN Revenue by Segment
AMZN Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.