Amazon.com Inc (AMZN) delivered a strong performance in the third quarter, exceeding analysts’ expectations with robust sales growth and a positive outlook for the holiday season. The company reported net sales of $158.9 billion, representing an 11% year-over-year increase, surpassing the Street consensus estimate of $157.2 billion. Earnings per share also came in above forecasts at $1.43, compared to the expected $1.14.
This impressive performance was fueled by strong growth across all key segments. North America sales climbed 9% year-over-year to $95.5 billion, while international sales rose 12% to $35.9 billion. Amazon Web Services (AWS), the company’s cloud computing arm, continued its impressive trajectory with a 19% year-over-year increase in sales, reaching $27.5 billion.
Operating income for the third quarter soared to $17.4 billion, significantly higher than the $11.2 billion reported in the same period last year. AWS contributed heavily to this growth, generating $10.4 billion in operating income compared to $7 billion in the previous year’s third quarter. North America and International segments also saw increases in operating income, reaching $5.7 billion and $1.3 billion respectively.
Amazon highlighted the remarkable success of its streaming segment, particularly with the launch of the second season of ‘The Lord of the Rings: The Rings of Power.’ This season broke records, becoming the most-watched returning season on Prime Video by hours watched. The company also noted the success of its ‘Thursday Night Football’ broadcasts, with the September 26 matchup between the Dallas Cowboys and New York Giants attracting over 17 million viewers, making it the most streamed NFL regular season game ever.
Looking ahead, Amazon anticipates a strong fourth quarter. The company forecasts net sales in a range of $181.5 billion to $188.5 billion, representing a 7% to 11% year-over-year increase. Operating income is expected to fall between $16 billion and $20 billion. Amazon CEO Andy Jassy expressed confidence in the holiday season, highlighting the success of the recent Prime Big Deal Days event and the launch of a new Kindle lineup. Jassy also announced that Amazon will provide more details on its new cloud infrastructure and AI capabilities at its re:Invent conference, taking place the week after Thanksgiving.
AMZN stock closed up 3.93% to $193.50 in after-hours trading on Thursday, trading within its 52-week range of $133.86 to $201.20. The company’s strong performance and positive outlook suggest a bright future for Amazon as it navigates the upcoming holiday season and continues to invest in growth areas like streaming and cloud computing.
