Amazon's third quarter results blown away analysts' estimated expectations, but it still managed to disappoint Wall Street. Analysts predicted that…
Amazon’s third quarter results blown away analysts’ estimated expectations, but it still managed to disappoint Wall Street.
Analysts predicted that Amazon’s earnings per share would be six times greater during the period than it had been in the same quarter last year. In fact, the company’s earnings per share during the third quarter, as reported Thursday, more than 10 days higher than the previous year’s quarter. Greater profits from its North American retail and Amazon Web Services cloud computing companies helped to increase its bottom line.
But the company retrieved the excellent result with several pieces of disappointing news. Revenues during the third quarter were inadequate and expected that their holiday sales would be less than the analysts had forecast. More worrying meant the company’s prospects that fourth quarter results could be significantly lower than Wall Street predicted.
Investors focused on the negative. In the aftershores, the company’s share of $ 1
57.16 or 8.8% was $ 1,625.01. The sale threw out the strong profits of the stock earlier in the day in the regular session.
Here’s how the company reported:
Once again Amazone’s cloud transaction gave a big boost. AWS’s revenues increased by 46% from the previous period to $ 6.7 billion. The division’s operating profit increased during the same period by 77% to $ 2.1 billion, accounting for more than a third of Amazon’s total net profit for the period.
But the company also saw a fall in its retail trade, especially in North America. That division saw sales jump 35% to $ 34.3 billion. Revenue from the segment increased to $ 2 billion from just $ 112 million in the third quarter last year.
These results are blown up by the company’s acquisition of whole foods. The purchase occurred in the middle of the third quarter last year, which meant that Amazon only included one month’s worth of Whole Foods revenues in its quarterly earnings last year, compared to one quarter of a quarter’s value this time.
Amazon has also benefited from a strong sale of its Prime subscription program. The total subscription revenue, which comes not only from Prime, but also from Audible.com, Amazon Music and other services, increased 52% from the third quarter last year to $ 3.7 billion.
And the company continued to see success in advertising. Its “other” revenue, which largely consists of advertising sales, jumped 122% to 2.5 billion dollars.
Amazon’s stock traded regularly trading up to $ 117.97 per share, or 7.1%, to $ 1 782.17.
We update this story when Amazon reports their numbers. Please refresh this page at the latest.