Technology

Investors Push Amazon Stock to New High After Strong Earnings

online shopping
Source: Thinkstock
Amazon.com Inc. (NASDAQ: AMZN) reported third quarter 2015 results after markets closed on Thursday afternoon. The online retailer posted diluted earnings per share (EPS) of $0.17 and revenues of $25.4 billion. In the same period a year ago, the company reported a net loss of $0.95 on revenues of $20.58 billion. Third-quarter results compare to the Thomson Reuters consensus estimates calling for a loss of $0.13 and $24.91 billion in revenues.

Other year-over-year comparisons: operating profit of $406 million compared with an operating loss of $544 million in the year-ago quarter; operating cash flow for the trailing twelve months of $9.8 billion compared with $5.7 billion for the same period a year ago; and free cash flow for the trailing twelve months of $5.4 billion compared with $1.1 billion at the same time a year ago.

As far as guidance for the fourth quarter, net sales are expected to be between $33.5 billion and $36.75 billion. Operating income is projected to be between $80 million and $1.28 billion. Thomson Reuters has fourth-quarter consensus estimates for EPS of $1.58 and $35.16 billion in revenue.

Amazon web services revenues totaled $2.09 billion, up about 78% from a total of $1.17 billion in the third quarter of this year. Web services accounted for $521 million in third-quarter net income, more than 5 times the $98 million total in the third quarter a year ago.

Amazon shares are setting a new record in after hours trading, up about 11% at $625.00. If that number holds, Amazon easily posts a new all-time high during tomorrow’s regular session. The current 52-week range is $284.00 to $580.57. Thomson Reuters had a consensus analyst price target of around $650.65 before today’s report.

ALSO READ: The Most Profitable Companies in the World

Essential Tips for Investing: Sponsored

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.