Amazon Shares Surge on Third-Quarter Profit
The Seattle-based e-commerce giant on Thursday reported net income of 17 cents per share on revenue of $25.5 billion.
Amazon shares were trading up more than 10 percent during after-hours trading after the retail giant reported strong third-quarter earnings.
The Seattle-based e-commerce giant on Thursday reported net income of 17 cents per share on revenue of $25.5 billion. Analysts were anticipating a net loss of 13 cents per share on revenue of $24.91 billion, according to Thomson Reuters.
Two consecutive quarters of profit are rare for Amazon, which has historically operated at a loss. During the same quarter last year, the company reported a loss of 95 cents per share on revenue of $20.6 billion.
CEO Jeff Bezos noted in a statement that the company's new Fire tablet, which was introduced during the quarter, is the No. 1 best-selling product on Amazon.com.
The third quarter also included Amazon's much-hyped Prime Day, a one-day sale for subscribers to its $99 annual Prime subscription that consumers largely criticized for offering paltry discounts or deals on unwanted items. At the time, Amazon said peak order rates surpassed those of last year's Black Friday.
During the quarter, Amazon had its first showing at the Primetime Emmys, with Transparent creator Jill Soloway and star Jeffrey Tambor both taking home trophies.
For the fourth quarter, the company is forecasting revenue between $33.5 billion and $36.75 billion, in line with analyst expectations. Amazon's forecasts for the upcoming quarter are key for the company, since the holiday shopping season is one of the most important times of the year for retail companies.
Amazon shares closed up more than one percent to $563.91 during Thursday trading on the Nasdaq. The earnings announcement sent shares up more than 10 percent during after-hours trading.