It was widely expected by analysts that Amazon‘s results would bring about earnings of about $0.03 per share, mostly due to its past tendency to reinvest most of its earnings into new areas. However, the company disclosed a net income of $256 million – which translates to $.52 per share, thus trouncing the forecasts.
Prime Day, which was created as an analog to the winter shopping frenzy but takes place during summer, had a big impact on sales. Brian Olsavsky, Amazon‘s Chief Financial Officer, revealed that the event did better internationally this year than it had done last year.
Revenue grew 34% to $43.7 billion in Q3, including $1.3 billion that came from their new Whole Foods branch. Expectations from analysts were averaged at $42.1 billion.
Colin Sebastian, analyst for Baird Equity Research, said that this was “another strong performance, with top-line growth accelerating in the core retail segment.“
“They are firing on all cylinders. The machine is churning,” Benchmark Co analyst Daniel Kurnos said.
Amazon‘s expectations for the last quarter of the year in terms of operating profit range between $300 million and $1.65 billion. Analysts expect it to reach $930.78 million – to be bolstered by the holiday sales period.