Amazon reported third-quarter results below analysts' expectations and a weak holiday forecast
Amazon shares fell in extended trading Thursday after the company reported third-quarter earnings of $1.89 per share on sales of $201.94 billion, slightly below analyst estimates, and forecast fourth-quarter sales below consensus. Investing.com senior analyst Jesse Cohen described the results as “a double disappointment,” citing the company’s free cash flow and weak guidance.
More context
Amazon.com shares fell in extended trading Thursday after the company reported a massive third-quarter cash burn, results slightly below analysts’ expectations and a holiday-quarter sales forecast largely below estimates. Amazon reported earnings of $1.89 a share on net sales of $201.94 billion, compared with LSEG analysts’ estimates of $1.96 a share and $202.31 billion. It forecast fourth-quarter net sales of $240 billion to $247 billion, with the midpoint of $243.5 billion below the $244.3 billion consensus.
Reports differed on the extended-trading decline: Reuters, carried by WTVB, put it at about 5%, The Globe and Mail at nearly 7%, and BigGo Finance at more than 6%. Shares had fallen 4.3% in regular trading to close at $243.79. Jesse Cohen, a senior analyst at Investing.com, cited free cash flow and weak guidance, saying the report was “a double disappointment.”
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Reporting
- BigGo Finance — Amazon, Intel, Reddit Lead Post-Earnings Selloff in Extended Trading — BigGo Finance
- The Globe and Mail — Amazon projects fourth quarter sales below estimates - The Globe and Mail
- WTVB News (with Reuters) — Amazon slides on light fourth-quarter sales estimates, cash burn | WTVB | 1590 AM · 95.5 FM | The Voice of Branch County
Verifier’s note
BigGo Finance, WTVB carrying Reuters, and The Globe and Mail report that Amazon’s quarterly results and fourth-quarter sales outlook disappointed investors and shares fell. Barron’s also makes that claim, but its listed publication time precedes Amazon’s earnings release, so it is not counted as timely confirmation.