Amazon’s third quarter results far exceeded Wall Street expectations Thursday, pushing up its stock by over 7 percent in after hours trading.
Investors were expecting smaller profits as the third quarter can be typically a heavy investment period for Amazon ahead of the holiday season. yet strong growth in North American sales as well as also also Amazon Web Services offset increased spending in fresh areas.
The company also offered a positive outlook for the fourth quarter, its largest quarter of the year.
Here are the most important numbers:
- Revenue: $43.7 billion vs. $42.14 billion, according to Thomson Reuters
- EPS: 52 cents vs. 3 cents per share, according to Thomson Reuters
- AWS revenue: $4.58 billion vs. $4.51 billion, according to Thomson Reuters
Revenue increased 34 percent via last year, in part due to the $1.3 billion in sales via Whole Foods, which Amazon acquired in late-August. North American sales were $25.4 billion, up 35 percent via last year, while international sales grew 29% to $13.7 billion.
AWS remains the the company’s growth driver, jumping another 42 percent in sales. Amazon’s cloud business can be the company’s most profitable unit which allows the idea to keep investing inside core business.
Investors continue to give a pass on Amazon’s laser-thin profits. Operating profit dropped in all three major segments, by 40 percent in total to $347 million, as operating expenses grew 45 percent via a year ago. which resulted in an operating margin of just 0.8%, the lowest since September 2014.
Still, Amazon shares were up by as much as 8 percent in extended hours, as well as also also have grown 30 percent year-to-date.
Amazon also broke out physical store sales for initially, posting $1.3 billion in revenue, which primarily came via Whole Foods.
Amazon said the idea added 0,000 employees inside last three months (roughly 87,000 via Whole Foods), ahead of the all-important holiday seasons.
Amazon gave fourth quarter guidance inside range of $56.0 billion as well as also also $60.5 billion, right in-line with street estimates of $58.9 billion.