Amazon reported strong Q3 results, forecasted a strong holiday quarter, stock price jumped 5.5%

From CNBC: 2024-10-31 20:10:30

Amazon reported a strong third quarter, exceeding revenue and operating income expectations. Revenue increased by 11% to $158.88 billion, with earnings per share at $1.43. The cloud business, Amazon Web Services, saw a 19% growth in revenue. Operating margins improved by 780 basis points to about 38%. Capital expenditures for the quarter totaled $21.4 billion, with a YTD total of $51.9 billion. The company expects to spend $75 billion in 2024, primarily to support AI services and technology infrastructure.

In addition to the cloud business, Amazon saw growth in Online Stores, Subscription Services, and Advertising Services. North America sales increased by 9% with operating margins nearing 6%. International segments also turned a profit in each quarter of the year. Amazon is focusing on reducing costs to serve customers more efficiently, with initiatives such as regionalization, same-day delivery facilities, and robotics to enhance delivery speed and reduce costs.

The company’s fourth-quarter forecast is strong, with net sales expected to be between $181.5 billion to $188.5 billion, a 7% to 11% increase year over year. Operating income is forecasted to be $16 billion to $20 billion. Amazon’s stock price jumped 5.5% in extended trading after the positive earnings report. The company continues to focus on margin improvement and cost reduction initiatives to drive profitability.



Read more at CNBC:: Amazon crushed e-commerce and cloud, forecast strong holiday quarter