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.
