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Amazon crushes Q3 expectations, but AWS growth slowed to 29% – TechCrunch

Amazon has continued to reap the rewards of a society more and more depending on ecommerce — a development additional fueled by the COVID-19 pandemic. The corporate crushed analyst expectations Thursday, reporting web earnings of $6.Three billion within the third quarter, or $12.37 per diluted share, in contrast with $2.1 billion in web earnings, or $4.23 per diluted share in the identical quarter final 12 months. 

The corporate introduced in a complete of $96.15 billion in income, a 37.4% enhance from the $69.98 billion it generated in the identical interval final 12 months. 

Analysts polled by Yahoo anticipated earnings per share of $7.41 on common, up from $4.23 final 12 months. Analysts anticipated income of $92.7 billion, up from $69.98 billion in the identical year-ago interval. 

Whereas the third-quarter numbers beat expectations, the image wasn’t all unicorns and rainbows. The corporate’s cloud-computing service AWS noticed development gradual within the third quarter. AWS generated $11.6 billion in gross sales, a 29% YoY gross sales development. That sounds dandy, but it surely’s truly smaller than the 35% YoY gross sales development the phase skilled within the third quarter of 2019.

The financials launched Thursday additionally confirmed development from the second interval of this 12 months, which was thought-about on the time a “killer quarter” by nearly each measure. Income grew 8% and web earnings popped 21% from the second quarter, figures that counsel that buyers have but to achieve their restrict for commerce delivered to their doorsteps.  

In the meantime, Amazon reported that its working money move elevated 56% to $55.Three billion for the trailing 12 months in comparison with $35.Three billion for the trailing interval ended September 30, 2019. Free money move (working money move much less capital expenditures) additionally rose to $29.5 billion within the third quarter in contrast with $23.5 billion within the trailing interval ended September 30, 2019. 

Wanting forward, Amazon is bullish on gross sales, however notes prices associated to COVID-19 would possibly have an effect on working earnings. The corporate stated it expects gross sales to develop between 28% and 38% within the fourth quarter in comparison with the identical interval in 2019, which might bump that determine to between $112 billion and $121 billion.

Amazon stated it expects working earnings to be between $1 billion and $4.5 billion, in contrast with $3.9 billion in fourth quarter 2019. This steerage assumes roughly $Four billion of prices associated to COVID-19.

 

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Author

Kirsten Korosec