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Amazon Shares Surge 10% as Q3 Earnings Beat Expectations

Strategic Insights

— 1 min read

Amazon's third-quarter earnings far exceeded Wall Street expectations, with revenue of $180.2 billion beating estimates of $177.5 billion. The company's Amazon Web Services (AWS) division saw a 20% increase in sales, while the North America and International segments reported sales growth of 11% and 14%, respectively. The strong earnings propelled Amazon's shares to a nearly 10% increase in after-hours trading.

Key Takeaways:

  • Amazon's Q3 revenue reached $180.2 billion, a 12% year-over-year increase and surpassing estimates of $177.5 billion.
  • The AWS division experienced a significant 20% growth in sales, exceeding estimates of $32.4 billion with $33 billion in revenue.
  • North America segment sales grew 11% from the previous year, reaching $106.3 billion, while International segment sales increased by 14% to $40.9 billion.
  • Net income was $21.2 billion, or $1.95 per share, surpassing estimates of $1.57 per share.
  • Amazon CEO Andy Jassy highlighted the strong demand in AI and core infrastructure, with the company accelerating capacity by adding 3.8 gigawatts in the past 12 months.
  • Amazon guided Q4 net sales in the range of $206 billion to $213 billion, representing a 10% to 13% year-over-year growth.
  • Operating income is expected to range from $21 billion to $26 billion in Q4, slightly conservative compared to the $21.4 billion reported in Q4 2024.

Statistics:

  • Revenue: $180.2 billion (Q3 2024)
  • Estimated revenue: $177.5 billion
  • Growth rate: 12%
  • AWS revenue: $33 billion
  • Estimated AWS revenue: $32.4 billion
  • Growth rate (AWS): 20%
  • North America segment sales: $106.3 billion
  • Growth rate (North America): 11%
  • International segment sales: $40.9 billion
  • Growth rate (International): 14%
  • Net income: $21.2 billion
  • Net income per share: $1.95
  • Estimated net income per share: $1.57
  • Q4 guided net sales: $206 billion - $213 billion
  • Q4 growth rate: 10% - 13%
  • Operating income (Q4 2024): $21.4 billion
  • Q4 operating income guidance: $21 billion - $26 billion

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