• Advertiser Disclosure

    You’re our first priority.
    Every time.

    We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

    So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.

  • Amazon drops on revenue miss

    Amazon’s third-quarter earnings beat Street estimates, but its revenue and fourth-quarter outlook fell short of expectations, dropping its stock roughly 6 percent in after-hour trading.

    Here are the most important numbers:

    EPS: $5.75 vs. $3.14 estimated, according to RefinitivRevenue: $56.6 billion vs. $57.10 billion estimated, according to RefinitivAWS revenue: $6.7 billion vs. $6.7 billion estimated, according to FactSet
    The company gave fourth-quarter revenue guidance in the range of $66.5 billion and $72.5 billion, below street estimates of $73.79 billion. The fourth quarter is the biggest and most important sales period for Amazon because of the holidays.

    Revenue increased 29 percent from last year. North American sales were $34.3 billion, up 35 percent from last year, while international sales grew just 13 percent to $15.5 billion. AWS continued to show strong growth, jumping 46 percent in sales.

    Net income, however, grew more than 10-times from the year-ago period, to $2.8 billion. The $3.7 billion in operating income far-exceeded Street estimates of $2.1 billion. The widening profits are largely driven by the growth of Amazon’s high-margin businesses, including its cloud, advertising and third-party seller services.

    Amazon’s “other” category, mostly comprised of its burgeoning advertising business, jumped 123 percent to $2.5 billion in revenue.

    In a prepared statement, Amazon CEO Jeff Bezos highlighted the growth of Amazon Business, its marketplace for business customers.

    “Amazon Business has now reached a $10 billion annual sales run rate and is serving millions of private and public-sector organizations in eight countries,” Bezos said in a statement.

    Amazon’s quarterly report comes amid a broader market sell-off that saw other tech stocks get hammered in recent weeks. Amazon stock is up roughly 49 percent this year.

    Read More

    LendingTree

    Login/Register access is temporary disabled
    Compare items
    • Total (0)
    Compare
    0