Earnings per share came in at an adjusted $5.75 on revenue of $56.6 billion. Wall Street had estimated earnings of $5.62 per share on revenue of $57.1 billion. Net income was $2.9 billion.
"We're not slowing down," founder and CEO Jeff Bezos said in a press release. He added that "Amazon Business is adding customers rapidly, including large educational institutions, local governments, and more than half of the Fortune 100."
Net sales of cloud services, which are comprised of revenue from Amazon Web Services, were $6.68 billion. Investors were focusing in on cloud sales especially keenly on Thursday, as Microsoft Corp. (MSFT) - Get Report reported slowing sales growth for its Azure product on Wednesday. As Wall Street continues to monitor the growth of the market for cloud computing, Microsoft's cloud revenue growth can often be reflective of what to expect for Amazon's, multiple sources told both TheStreet and sister publication RealMoney.
Amazon guided for operating income of between $2.1 billion and $3.6 billion for the fourth-quarter 2018. The low end, $2.1 billion, would represent no increase over last year's fourth-quarter operating income of $2.1 billion. The expected figure was likely pushed down by the $15 minimum wage for Amazon's workers set to go into effect Nov. 1.
The results received some positive commentary from Moody's lead retail bond analyst Charlie O'Shea. "On the AWSside, it was another quarter of significant sales growth, along with margin expansion of over 500 basis points, indicating that even in a cut-throat competitive environment, Amazon is still able to avoid 'buying business' to continue to grow share," O'Shea said.
He added, "Amazon's outlook for Q4 indicates that the company expects these favorable operating and expense trends to continue."
Amazon shares are up 40.47% this year.
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