Amazon reported impressive third-quarter results that exceeded analysts' expectations as the e-commerce giant achieved robust revenue growth from its cloud-computing platform and advertising business. Per-share earnings jumped to $1.43 for the quarter ending September 30, up from $0.94 a year prior, surpassing the GAAP consensus of $1.14 from Capital IQ.
Sales rose 11% year-over-year to reach $158.88 billion, outpacing analysts' projections of $157.28 billion. The company's shares responded positively, rising 4.3% in after-hours trading. The Amazon Web Services (AWS) cloud computing segment experienced a significant boost, with sales increasing 19% annually to $27.45 billion.
Similarly, revenue from advertising services climbed to $14.33 billion, also reflecting a 19% rise. In terms of geographical performance, North American sales increased by 9%, totaling $95.54 billion, while international sales grew by 12%, reaching $35.89 billion. Consolidated operating income saw a significant jump, climbing to $17.41 billion in the third quarter compared to $11.19 billion the previous year. Looking ahead, Amazon expects fourth-quarter sales to be between $181.5 billion and $188.5 billion, translating to an annual growth rate of 7% to 11%.
Analysts surveyed by Capital IQ anticipate sales to hit $186.26 billion. Furthermore, the company has projected operating income for the current quarter in the range of $16 billion to $20 billion, a significant increase from $13.2 billion in the same quarter last year..