Thursday afternoon was tech earnings mania with Amazon, Alphabet, Intel and Microsoft all reporting earnings. All of them beat expectations across the board.
- Google’s parent company Alphabet beat expectations on Q3 results, sending the stock popping after hours. The company generated $US27.77 billion in revenue, up 24% from a year ago.
- Intel beat analyst expectations in its third-quarter earnings report with revenues up 2% from the same quarter last year.
- Microsoft’s fiscal first quarter earnings beat Wall Street expectations on both the top and bottom lines. Shares in the company, which reported its results after the closing bell on Thursday, inched up almost 4% to about $US81.75 in after-hours trading.
Amazon also just released its third-quarter earnings report. It reported:
- Revenue: Q3 2017 revenue of $US43.7 billion, versus $US42.19 billion expected. So that’s a beat.
- EPS of $US0.52 vs $US0.52 last year.
Here’s what you need to know about Amazon earnings:
Revenue jumped 34% over the year ago quarter. Investors are happy. Amazon’s stock has jumped 7% in after-hours trading to about $1,037 a share.
That’s better news than last quarter when it missed Wall Street’s Q2 expectations and the stock dropped. The e-commerce giant is ramping up investments in warehouses, content for its Prime Video streaming service, and investments in international markets and in groceries, following its $US13.7 billion acquisition of Whole Foods earlier this year.
Amazon’s all-important cloud computing unit reported $US4.6 billion in revenue, up from $US3.2 billion, up 34%. Wall Street has been concerned about slowing growth with AWS but it’s still growing well.
For its fourth quarter, a major one that includes the holiday shopping season, Amazon predicts net sales between $US56 billion and $US60.5 billion. So that’s growth between 28% and 38% compared with the fourth quarter 2016.
That forecast includes the impact from its acquisition of Whole Foods Market and it also includes a favourable foreign exchange rate. Operating income is expected to be between $US300 million and $US1.65 billion, compared with $US1.3 billion in the fourth quarter 2016.
Here’s the full press release.