Amazon.com, Inc. Bombs In 3Q Earnings

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Amazon.com, Inc. Bombs In 3Q Earnings
By Szk7788 (Own work) [CC BY-SA 3.0 or GFDL], via Wikimedia Commons

Amazon.com, Inc. (NASDAQ:AMZN) released the earnings results from its most recently completed quarter tonight after closing bell, posting net losses of 95 cents per share on net sales of $20.58 billion, a 20% year over year increase. Analysts had been expecting losses of 76 cents per share on $20.8 billion in revenue. In the same quarter last year, Amazon reported net sales of $17.09 billion.

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Key metrics from Amazon’s earnings report

The online retailer saw operating cash flow rise 15% to $5.71 billion for the trailing 12 months. That’s compared to $4.98 billion in the same period last year. Free cash flow rose to $1.08 billion, compared to $388 million last year.

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As of the end of September, Amazon had 481 million shares, compared to 475 million as of the same time last year. Operating losses were $544 million in the third quarter, compared to last year’s $25 million. Net losses were $437 million, compared to losses of $41 million last year.

Amazon’s third quarter highlights

During the third quarter, Amazon revealed the new Kinle Voyage and the Fire HD tablet, as well as the Fire HD Kids edition tablet. The company also showed off the Fire HDX 8.9. Amazon Fire TV became the company’s best-selling streaming video box in the U.K., the U.S. and Germany.

Other highlights include a new round of games from Amazon Game Studies, the launch of KDP Kids and Kindle Kids’ Book Creator, the Twitch acquisition, the expansion of the AmazonFresh service and the 3D Printed Products store.

Amazon guides for current quarter

For the fourth quarter, Amazon said it expects net sales of between $27.3 billion and $30.3 billion, which is a 7% to 18% growth rate year over year. The company expects operating results to be between a loss of $570 million and a gain of $430 million. That’s compared to a gain of $510 million in last year’s fourth quarter.

Amazon included about $470 million in stock-based compensation and amortization.

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Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at Mjones@valuewalk.com.
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2 COMMENTS

  1. now imagine, if Apple’s PE is as high as Amazon…Apple makes tons of money and yet its stock price acts like a utility company but Amazon stock price trades like a start-up company.

  2. What’s the point, this happens after every earnings report from Amazon. It will slide tomorrow and then these so called analysts and investors will pump up the stock again. Before the next earnings report, Amazon will again be at 350-380$.

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