Team reports Q3 EPS ($2.52) vs ($2.78) last year from

Amazon’s Q3 Sales Exceed Estimates, But Net Income Falls Due To Inflation, Currency Headwinds

Highlights:

- Amazon reported its third-quarter earnings on Thursday, announcing earnings per share of $2.52, which fell short of the analyst consensus of $2.78 but surpassed last year's EPS of $2.68. - Revenue for the quarter came in at $149.2 billion, a 15% rise year over year and largely exceeding estimates of $145.4 billion. - Despite high inflation and a volatile currency environment, Amazon Web Services (AWS) grew revenue by 27% to $20.5 billion, continuing its record of steady growth. - The company's loss-making international business also saw a surge in revenue, rising 10% to $26.2 billion, buoyed by robust Prime membership growth and a resilient performance in key markets like Germany and Japan.

Earnings Breakdown:

Amazon's net income for Q3 stood at $2.9 billion, significantly lower than the $3.2 billion reported in the same quarter last year. This decline is largely attributable to the impact of rising costs on its e-commerce operations, as well as unfavorable currency exchange rates. - Operating income fell by 46% to $2.5 billion, largely due to higher fulfillment costs, a surge in marketing expenses, and increased technology and content investments. - Inflationary pressures continue to weigh on Amazon's margins, with the company reporting an increase in delivery costs as it seeks to optimize its logistics network amid fuel price hikes. - Despite these headwinds, Amazon's cloud computing division, AWS, emerged as a bright spot, contributing $5.4 billion to the company's operating income, up by 28% year over year.