Amazon Beats 3rd-Quarter Sales Estimates, Shares Rise

After the market closed today, Amazon (NASDAQ: AMZN  ) reported better-than-expected third-quarter results, sending shares up as high as 8% in after-market trading hours on top of a 2% gain during market hours.

On average, analysts were expecting Amazon to post a loss of $0.09 per share, and revenue of $16.8 billion. While Amazon matched EPS expectations, sales came in higher than expected. Amazon posted revenue of $17.09 billion, up 24% from the year-ago quarter. Excluding $332 million in unfavorable year-over-year changes in foreign exchange rates, however, net sales rose 26% from the year-ago quarter. With expectations for year-over-year sales growth of just 21%, Amazon's better-than-expected revenue is likely the primary driver behind the market's apparent approval; in an earnings preview earlier this week, I indicated that sales would likely take center stage when the company reported results.

Profitability still looks a ways out for Amazon. Though sales have soared, operating expenses have soared just as rapidly. In the year-ago quarter, operating expenses were $13.834 billion, erasing any possible profit from its $13.806 billion in sales. Similarly, this quarter's operating expenses of $17.117 billion surpassed its total sales of $17.092 billion.

Revenue continues to be the story at Amazon, and the online commerce giant certainly proved today that its growth is far from over.

Investors can get further details by listening to the company's third-quarter conference call, which started at 2:00 PM Pacific Time. You can listen to a replay here. In the call, look for updates on other hot topics, particularly Amazon Instant Video and AmazonFresh.

Why Amazon is an excellent next-decade holding
The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "
3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 24, 2013, at 6:18 PM, ScoopHoop wrote:

    This company still can't make a profit. After years of building up the business, you would think AMZN would have found a way to build in a 2% margin. Grocery stores have better margins than AMZN. High profit margin businesses like HSY, BKE, UNP and RAI have less downside risk and return a lot more money to shareholders than AMZN ever did.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2698827, ~/Articles/ArticleHandler.aspx, 12/19/2014 4:23:26 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement