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 (AWS) 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, Stifel 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.