Amazon exceeds expectations with strong quarterly results

Amazon's recent quarterly results have outperformed Wall Street forecasts. Key to this success was a broader product range and an improved delivery model, as company representatives reported. In a conversation with analysts, Amazon CEO Andy Jassy clarified the company's strategic direction: customer focus through a comprehensive offering, low prices, and fast as well as free delivery. The recently expanded Prime benefits, including unlimited grocery deliveries and fuel discounts, were particularly highlighted. The Seattle-based company reported earnings per share of $1.43 and revenue of $158.9 billion. These figures clearly exceeded analysts' estimates of $1.14 earnings per share and $157.2 billion in revenue. Additionally, operating income rose by 55% to $17.4 billion, while net income in the third quarter increased to $15.3 billion compared to $9.9 billion in the previous year. The growth in various segments was particularly noteworthy: North American sales increased by 9% to $95.5 billion, while international sales rose by 12% to $35.8 billion. Amazon's cloud division, Amazon Web Services, grew by 19% year over year to $27.5 billion. Jassy emphasized the optimization of the transportation and delivery network as crucial for the positive growth. Amazon is setting a course for swift deliveries for Prime members worldwide while reducing costs in the process. "We continue to see great potential for efficiency gains, especially in regional distribution and delivery," Jassy stated. Online retail revenue rose by 7% in the third quarter to $61.4 billion, surpassing analysts' expectations of $59.6 billion. Revenue from third-party seller services grew by 10% to $37.8 billion. Amazon remains optimistic for the fourth quarter and expects net sales between $181.5 billion and $188.5 billion. Operating income is projected to be between $16 billion and $20 billion, compared to $13.2 billion in the fourth quarter of 2023.