Amazon Q3 Results 2022: Amazon share price crash on below expected quarterly revenue

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Amazon quarterly results

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:

ParticularsAmountGrowth (on-year)
Revenue$127 billion15%
Net Income$2.9 billion-9%
Operating Income$2.5 billion-49%
Amazon Web Services revenue$20.5 billion27%

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.

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