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Amazon (AMZN) reported third quarter results that topped Wall Street estimates on both the top and bottom lines. The company posted earnings of $1.43 per share compared to a Bloomberg consensus estimate of $1.16. Net sales were $158.9 billion versus the expected $157.29 billion. AWS revenue net sales were $27.45 billion compared to a $27.49 billion estimate.
For Q4, Amazon sees net sales in a range of $181.5 billion to $188.5 billion. Wall Street was expecting $186.36 billion. It sees operating income in a range of $16.0 billion to $20.0 billion versus the estimated $17.49 billion.
Yahoo Finance Senior Reporters Alexandra Canal, Jared Blikre, and Josh Schafer break down the tech giant's results in the video above.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
This post was written by Stephanie Mikulich.
Amazon earnings just crossing the wire and shares are higher on the back of a beat on both the top and bottom lines here. So, both revenue and EPS coming in ahead of expectations, operating income also ahead of expectations. Operating margins coming in at 11%, the estimate there was for 9.3%. Now for AWS, the cloud uh component of the business, net sales hitting 27.45 billion, the estimate was around 27.5 billion. So roughly in line, a slight miss there uh for fourth quarter guidance, they see net sales coming in between 181.5 billion to 188.5 billion, estimate was for 186.36 billion. So we're seeing shares climb as much as 6% as that fourth quarter operating income it was at the midpoint and topped estimates there. So, it seems to be guidance once again driving this stock higher. And it's interesting because in the second quarter results, we saw guidance drive the stock lower. We're seeing the opposite is true today.
Yeah, what I'm really focusing in here on are operating margins, excuse me there. So you take, let's begin with the operating income. 17.41 billion, that's up 56% year over year and that handily beats the estimate of 14.75 billion by about 3 billion dollars. Operating margin, this has been a concern for investors, 11% versus 7.8% one year ago. The estimate was for 9.34%. So uh North America looks like that was 5.9%, that was a small beat. International 3.6%, a much bigger beat than the estimated 1.23%. So, at least on this one area uh things are looking a little bit better. There are concerns about the consumer. So can they charge as much uh can they maintain their prices and also their margins here? And I think the answer is a little bit of those concerns have dissipated.
Right. Yeah Jared, Amazon stock definitely seeing a nice pop here. Allie, you pointed to that guidance and it seems like that seems to be the key thing perhaps driving this stock right now. Net sales in that range of 181 to 188. The one thing I'd point out there is that's quite a big range to some extent, right? We're talking about large numbers here in the hundreds of billions of dollars, but that is a seven billion dollar range. Uh Wall Street's forecast falling kind of right in the middle of that, but other things to point out here that I think are standing out is just also another earnings beat from a big tech company, right? This is now every single one of the mag 7 companies has had an earnings beat. So again, a reminder that that's not really necessarily what's been driving these stocks, but a trend we continue to see when we talk about S&P 500 earnings overall to see beats from these mag 7 companies company after company after company setting us up for 4:30 with Apple.
Right, and look, Amazon is this huge company, multiple components to the business. Andy Jassy in the earnings release, he noted that as we get into the holiday season, they're excited about what's in store for customers. They mentioned prime day, those big deals uh obviously a huge component of the company. Also mentioned the NFL Black Friday game, election day coverage with Brian Williams on Prime Video. We know Prime Video it has really stood out to me as someone who covers the media space. They've heavily been investing in that business, investing in sports. They just rolled out ads on the platform, advertising strength uh continued in the quarter. So, just another name like you said with the tech giants outperforming.
Well and the other thing I'd point out here too, remember yesterday a couple of these big tech stocks, I believe Microsoft was positive right after it reported before reversing down. We don't have a clear view looking at this release into what Amazon is planning to spend on AI, right? If we're talking about that being one of the key things right now that is perhaps weighing on some of these big tech stocks, there's not a clear CapEx read here on what they're spending on AI. That's usually something you get a little bit more detail once we get on that earnings call at 5 o'clock, but I think that's going to be another key part of this story because it certainly seemed to be a big part of the story for its fellow big tech companies.