Amazon misses, stock falls

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.

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