Amazon gives Wall Street mixed financial picture in earnings report
Summary
Amazon reported third-quarter sales of $201.94 billion and net income of $20.69 billion, both below analysts’ expectations. AWS sales grew 39.3%, while Amazon forecast fourth-quarter sales below analysts’ estimates at the midpoint of its range.Key Facts
- Amazon’s third-quarter sales rose from $180.17 billion a year earlier to $201.94 billion.
- Net income was $20.69 billion, or $1.89 per share, compared with $21.19 billion, or $1.95 per share, a year earlier.
- Analysts had expected earnings of $1.97 per share and sales of $202.2 billion, according to FactSet.
- AWS sales grew 39.3% in the quarter, up from 37% in the previous quarter; Amazon said this was its fastest growth rate in nearly five years.
- Amazon forecast fourth-quarter sales of $240 billion to $247 billion, a 12% to 16% increase from a year earlier; analysts expected $244.16 billion.
- Amazon shares fell more than 6% in after-hours trading after the results were released.
- CEO Andy Jassy said Amazon expects fiscal-year capital spending, mostly on artificial intelligence, to reach $220 billion, up from a $200 billion plan announced in February.
- Amazon said it plans to hire 300,000 U.S. seasonal workers for the holiday shopping period, compared with 250,000 last year.
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