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Amazon to bounce off five-month low after big earnings beat

Published 2023-10-27, 03:52 a/m
© Reuters.  Amazon to bounce off five-month low after big earnings beat
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Proactive Investors - Amazon.com Inc (NASDAQ:AMZN) shares are due to climb off their five-month low on Friday after the e-commerce giant reported better-than-expected financial results for its third quarter of 2023, with a notable beat on the bottom line.

The company’s quarterly earnings per share (EPS) came in at $0.94, a more than three-fold increase from a year earlier and much better than the $0.58 analyst consensus estimate.

Its revenue for the period, meanwhile, rose 13% to $143.1 billion, edging past expectations of $141.4 billion.

Amazon Web Services sales climbed 12% to $23.1 billion during the quarter, a slight miss on the analyst forecast of $23.2 billion.

However, revenue for its advertising segment came in at $12.1 billion, better than the $11.6 billion expected.

Looking ahead, Amazon said its fourth-quarter revenue will be between $160 billion and $167 billion, the midpoint of which would be about 10% higher than the same period last year and in line with analyst consensus forecast of $166.6 billion.

The stock is trading 5.4% higher at $125.98 in pre-market trading, having on Thursday sunk below $120 for the first time since May.

Analysts at Stifel said the 12% AWS growth was "just enough to keep the goblins away".

And on the Q4 guidance, noted that Amazon "generally takes a pragmatic approach to its profit outlook", with an average beat of 84% over the midpoint of guidance over the past 12 quarters.

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