Amazon.com Inc (NASDAQ: AMZN)
Amazon stock tanked $157.20, or 8.82% in post-market trading on Thursday after the online retail giant issued a lower than expected fourth-quarter revenue guidance for the upcoming holiday season.
Despite the downbeat view, the Seattle, Washington-based company blew past Wall Street profit estimates for its fiscal third-quarter ended Sept. 30, 2018. The retailer, however, posted its slowest-growing quarter in terms of sales and even fell short of analysts’ estimates.
Amazon announced its earnings amid a continuing market sell-off that has seen other tech stocks like Facebook and Apple get battered. Shares of the company have gone down more than 9% in the past month, while the S&P 500 index has declined as much as 8.5%.
AMZN Earnings & Outlook
The company posted net income of $2.9 billion, or $5.75 per share, compared with $256 million, or $0.52 per share, in the year-ago period. Revenue was $56.6 billion, up 29.3% from $43.7 billion year over year. Analysts expected earnings of $3.14 per share on revenue of $57.10 billion, according to Refinitiv figures.
The company’s North American segment saw revenue grow 35% from a year earlier to $34.3 billion. Revenues from the Amazon Web Services and International segments grew 46% and 13%, respectively. Its Other business unit accounted for $2.5 billion of the total revenue during the quarter.
For the current quarter, Amazon sees revenue in the range of $66.5 billion to $72.5 billion. Analysts expect the company to come out with fourth-quarter revenues of $73.8 billion.
Amazon.com CEO Comments
“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,” commented Jeff Bezos, Amazon founder and Chief Executive Officer.
“And we’re not slowing down — Amazon Business is adding customers rapidly, including large educational institutions, local governments, and more than half of the Fortune 100. These organizations are choosing Amazon Business because it increases transparency into business spending and streamlines purchasing, with increased control. The team is doing a fantastic job building and innovating for customers.”
Amazon Inc Company Profile
Amazon.com, Inc. engages in the provision of online retail shopping services. It operates through the following segments: North America, International, and Amazon Web Services (AWS). The North America segment includes retail sales of consumer products and subscriptions through North America-focused websites such as www.amazon.com and www.amazon.ca.
The International segment offers retail sales of consumer products and subscriptions through internationally-focused websites. The Amazon Web Services segment involves in the global sales of compute, storage, database, and AWS service offerings for start-ups, enterprises, government agencies, and academic institutions. The company was founded by Jeffrey P. Bezos in July 1994 and is headquartered in Seattle, WA. – CNN Money