Amazon’s Stellar Earnings Beat Just Isn’t Enough to Move the Needle
Amazon reported stellar third quarter results after the close, but investors did not seem that enthused
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Amazon.com Inc. (NASDAQ: AMZN | AMZN Price Prediction) released third-quarter financial results after markets closed Thursday. The e-commerce empire said that it had $12.37 in earnings per share (EPS) and $96.1 billion in revenue, compared with consensus estimates that called for $7.41 in EPS and $92.7 billion in revenue. In the same period of last year, Amazon reported $4.23 in EPS and $69.98 billion in revenue.
This year alone, Amazon has created over 400,000 new jobs and is in the process of bringing even more employees into regular, full-time positions.
Amazon Web Services (AWS) revenues increased 29.0% to $11.6 billion, up from $9.00 billion in the same period of last year, with operating income of $3.54 billion.
In its other segments Amazon reported:
- North American net sales increased 39.2% to $59.37 billion, with an operating income of $2.25 billion.
- International sales increased 37.2% to $25.17 billion, with operating income of $407 million.
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As for guidance, the company expects to see net sales in the range of $112.0 billion to $121.0 billion, with operating income in the range of $1.0 billion to $4.5 billion in the fourth quarter. The consensus estimates call for $9.18 in EPS on $112.32 billion in revenue for the quarter.
On the books, cash and cash equivalents totaled $22.97 billion at the end of the quarter, versus $37.84 billion at the end of the same period last year. Operating cash flow increased 56% to $55.3 billion for the trailing twelve months versus $35.3 billion in the same period last year. At the same time, free cash flow increased to $29.5 billion, compared with $23.5 billion.
Shares of Amazon closed Thursday at $3,211.01, in a 52-week range of $1,626.03 to $3,552.25. The consensus price target is $3,755.30. Following the announcement, the stock was down about 1% at $3,170.00 in the after-hours session.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
