Amazon misses, stock falls

Jeff BezosChip Somodevilla/GettyAmazon CEO Jeff Bezos

Amazon just reported its third quarter earnings.

It’s a big miss on profits but nearly in-line with revenue expectations. Fourth quarter revenue guidance was lower than expected too.

Amazon stock was down as much as 7% in after hours, and is now down about 4.5%.

Here are the most important numbers:

  • EPS (GAAP): $0.52 per share vs. $0.78 per share average analyst estimate
  • Revenue: $32.7 billion vs. $32.69 billion average analyst estimate (up 29% year-over-year)
  • AWS (revenue): $3.23 billion vs. $3.13 billion expected (up 55% year-over-year)

Net income came in at $252 million, putting Amazon in the black for six straight quarters — an unusual situation for the company which historically reinvests profits into new growth opportunities. But that’s lower than last quarter’s $857 million, putting an end to the previous three quarters’ record-profit streak.

Amazon gave fourth quarter revenue guidance in the range of $42 billion to $45.5 billion, slightly lower than analyst expectations of $42.18 billion to $46.27 billion.

The company reported operating income of $575 million, up 41% from last year’s $406 million.

AWS continues to be the most profitable business for Amazon, bringing in $861 million in operating income, more than double last year’s $428 million, at a solid 26% margin. The 55% year-over-year growth is the largest ever.

Amazon has over 306,000 employees as of the end of third quarter, a 38% increase from last year.

We’ll be updating this post with info from the earnings call or click here
for the latest updates.

Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.

NOW WATCH: Why your iPhone alarm snooze is automatically set to 9 minutes

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.