Amazon’s Q3 Results Are Out, But Shareholders Aren’t Happy

Amazon released its Q3 sales results on Thursday, as well as its profit guidance for Q4. Despite strong revenue growth over the last three months, the company’s stock has taken a hit as projections for the holiday season fall short.

Source: www.powerretail.com.au

Amazon reported its Q3 2018 results on October 25, and released guidance for the next quarter. Revenues jumped 29% to $56.6 billion from $43.7 billion a year ago. Net profit jumped to $2.9 billion or $5.75 per share, up from $256 million or $0.52 per share last year. Strong growth was seen from the North American markets, where sales jumped 35% YoY, while sales internationally clocked a surge of 13% YoY. Revenues of Amazon Web Services, Amazon’s cloud service division, surged 46% to $6.68 billion. Despite a robust performance in the current quarter, investors were disappointed at the Q4 projections, where the Company has given a sales guidance of $66.5 billion to $72.5 billion. Analysts estimated revenues of $73.8 billion for the Q4 2018. Amazon currently trades at a market capitalization of $869.2 billion and a price-to-book multiple of 24.8x.