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Amazon posts strong performance for Q3; beats estimates

(FinancialPress) — Retail giant Amazon‘s (AMZN) Q3 earnings report revealed that its sales surged in the summer and profit blew expectations out of the water. “Prime Day“ promotions were enthusiastically received by shoppers, who also bought groceries at the company’s newest acquisition – the Whole Foods Markets chain of stores.
The news took shares to rise over 7% in after-hours trading.
Amazon‘s revolutionizing the market by lowering consumer costs and slashing purchase times to a fraction of what they usually take after their $13.7 billion purchase of Whole Foods back in August, ensuring that customers can get products delivered to their doorsteps in a timeframe even lower than what it would normally take them to get their goods from physical stores.

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.

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Written by Ruben Maciel

Ruben is a South American writer who focuses on the
state of the cryptocurrency, cannabis and tech industries worldwide.

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