Amazon.com Inc. (AMZN) reported impressive third-quarter results, with both revenue and earnings surpassing Wall Street expectations. The company's performance was driven by robust growth in its high-margin businesses, including Amazon Web Services (AWS) and advertising services, as well as resilient e-commerce operations.
For the quarter ended September 30, 2024, Amazon posted revenue of $158.9 billion, up 11% year-over-year and exceeding the consensus estimate of $157.3 billion. Net income soared 55% to $15.3 billion, or $1.43 per diluted share, surpassing analysts' expectations of $1.14 per share.
AWS, Amazon's cloud computing division, continued its strong momentum, with revenue climbing 19% to $27.5 billion. The segment's operating income rose to $10.4 billion, reflecting the company's ongoing investments to meet the surging demand for cloud services and generative AI capabilities.
Amazon's advertising business also witnessed impressive growth, with revenue increasing by 19% to $14.3 billion. The company has been expanding its advertising offerings across various platforms, including online stores, streaming services, and third-party publishers, attracting more advertisers seeking to reach Amazon's vast customer base.
Despite concerns about consumer spending, Amazon's e-commerce operations in North America showed resilience, with sales rising 9% to $95.5 billion. The company's international segment also performed well, with sales increasing 12% to $35.9 billion.
Looking ahead to the crucial holiday shopping season, Amazon provided an optimistic outlook. The company expects revenue of $181.5 billion to $188.5 billion for the fourth quarter, with a midpoint of $185.0 billion, surpassing analysts' consensus estimate of $186.4 billion. Additionally, Amazon guided for operating income between $16.0 billion and $20.0 billion, with a midpoint of $18.0 billion, exceeding the consensus estimate of $17.5 billion.
