Amazon Reports Strong Q3 Earnings; Revenue Up 11%, Operating Margin Hits 11%, AWS Revenue Up 19%

Oct 31, 2024, 08:08 PM

Amazon.com Inc. reported third-quarter earnings that surpassed Wall Street expectations, with net sales increasing 11% year-over-year to $158.9 billion, exceeding estimates of $157.3 billion. Earnings per share rose 52% to $1.43, beating analysts' projections of $1.14. The company achieved an operating margin of 11%, one of its highest ever, with operating income up 55% to $17.4 billion. Amazon Web Services (AWS), the company's cloud computing division, saw revenue grow 19% to $27.5 billion, while its operating margin improved to a record 38%, contributing $10.4 billion to operating income, nearly 60% of Amazon's total. Advertising revenue increased by 22% year-over-year to $14.25 billion, highlighting the rapid growth of Amazon's ad business, which has doubled over the past three years. The international segment turned profitable, reporting $1.3 billion in operating income. However, capital expenditures soared, with the company spending $22.6 billion, up from $17.6 billion in the previous quarter and $12.5 billion a year ago, underscoring the capital-intensive nature of AWS. Amazon provided fourth-quarter revenue guidance between $181.5 billion and $188.5 billion, slightly below consensus estimates at the midpoint. Following the earnings release, Amazon's stock jumped approximately 5% in after-hours trading.