Amazon Q3 Results 2022: Amazon share price crash on below expected quarterly revenue
Amazon reported its quarterly results on Thursday after market hours and reported revenue below estimates. Amazon stock tanked as the company issued a disappointing fourth-quarter forecast. In the after-market hours, the stock is trading 12% lower. The Amazon share price has fallen over 35% YTD.
Key highlights from Amazon's quarterly results:
| Particulars | Amount | Growth (on-year) |
| Revenue | $127 billion | 15% |
| Net Income | $2.9 billion | -9% |
| Operating Income | $2.5 billion | -49% |
| Amazon Web Services revenue | $20.5 billion | 27% |
Let us look at the Amazon quarterly results numbers in detail:
Amazon Q3 Results revenue: Amazon reported revenue of $127.10 billion against analysts' forecast of $127.46 billion. In the year-ago period, the company posted revenue of $110.80 billion.
Source: Amazon Q3 presentation (Y/Y - your-over-year, F/X - Foreign Exchange)
International segment sales decreased 5% year-over-year to $27.7 billion but increased 12% excluding changes in foreign exchange rates. AWS segment sales increased 27% year-over-year to $20.5 billion, lower than the estimated $21.1 billion. Advertising revenue stood at $9.55 billion, higher than the Street estimate of $9.48 billion. The Prime Day events of the last few months didn't boost Amazon's revenue as much as investors might have hoped.
Source: Amazon Q3 presentation (Y/Y - your-over-year, F/X - Foreign Exchange)
Amazon Q3 2022 Operating income: In Q3'22, the operating income decreased to $2.5 billion compared to $4.9 billion in the year-ago period. AWS segment operating income was $5.4 billion, compared with an operating income of $4.9 billion in the year-ago period.
Source: Amazon Q3 presentation (Y/Y - your-over-year, F/X - Foreign Exchange)
Amazon Q3 earnings 2022: Net income decreased to $2.9 billion in Q3'22, or $0.28 per diluted share, compared with $3.2 billion, or $0.31 per diluted share, in the same quarter last year.
Source: Amazon Q3 presentation (Y/Y - your-over-year)
Amazon Q3 results 2022 Cash flow: Operating cash flow stood at $39.7 billion, down 27% for the trailing twelve months, compared with $54.7 billion for the trailing twelve months that ended September 30, 2021.
Amazon Quarterly Results Guidance for Q4: The company expects to post fourth-quarter revenue between $140 billion and $148 billion, representing growth of 2% to 8% YoY. It is below analysts' expectations, the average expected revenue for Q4 was $155.15 billion.
Amazon Q3 earnings Management commentary: "There is a lot going on in the macroeconomic environment, and we'll balance our investments to be more streamlined without compromising our strategic, long-term bets," Amazon CEO, Andy Jassy.
How were Amazon's Q3 earnings 2022?
The revenue was above Street estimates at $127.10 billion. The company reported earnings per share of 28 cents.
What is the target price for Amazon?
Based on 43 Analysts, the average target price for amazon is $165.
Why is Amazon share price falling?
The Amazon share fell after the company reported weak guidance for the December quarter. It expects revenue between $140 billion and $148 billion, lower than the street estimate of $155 billion.