Key points
• Amazon exceeded analyst predictions for both revenue and earnings in the third quarter.
• Revenue jumped 13% increase indicating a rebound after a challenging 2022 marked by high inflation and rising interest rates.
• However, the midpoint of Amazon's fourth-quarter forecast fell short of analysts expectations.
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| Amazon exceeds expectations with a 13% surge in revenue, according to reports. |
Amazon anticipates fourth-quarter sales, encompassing the crucial holiday season, to range between $160 billion and $167 billion, slightly below analysts' expectations of $166.6 billion.
IF sales hit the mid-point of this range at $163.5 billion, it would signify a 9.6% growth from the previous year's $149.2 billion.
In the third quarter, revenue surged by 13%, indicating a positive trend after a challenging 2022 marked by high inflation and increased interest rates.
During the pandemic, Amazon rapidly expanded, leading to the necessity of cost-cutting measures, including laying off 27,000 employees and discontinuing unprofitable ventures.
CEO Andy Jassy, who took over from founder Jeff Bezos in mid-2021, stated that these efforts are yielding results. The company's operating margin, the profit left after core operational costs, stands at 7.8%, the highest since early 2021.
Jassy expressed optimism about Amazon Web Services (AWS), highlighting an uptick in closed deals and several agreements signed in September that will impact the fourth quarter.
