Technology

Investors Push Amazon Stock to New High After Strong Earnings

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Amazon.com Inc. (NASDAQ: AMZN) reported third quarter 2015 results after markets closed on Thursday afternoon. The online retailer posted diluted earnings per share (EPS) of $0.17 and revenues of $25.4 billion. In the same period a year ago, the company reported a net loss of $0.95 on revenues of $20.58 billion. Third-quarter results compare to the Thomson Reuters consensus estimates calling for a loss of $0.13 and $24.91 billion in revenues.

Other year-over-year comparisons: operating profit of $406 million compared with an operating loss of $544 million in the year-ago quarter; operating cash flow for the trailing twelve months of $9.8 billion compared with $5.7 billion for the same period a year ago; and free cash flow for the trailing twelve months of $5.4 billion compared with $1.1 billion at the same time a year ago.

As far as guidance for the fourth quarter, net sales are expected to be between $33.5 billion and $36.75 billion. Operating income is projected to be between $80 million and $1.28 billion. Thomson Reuters has fourth-quarter consensus estimates for EPS of $1.58 and $35.16 billion in revenue.

Amazon web services revenues totaled $2.09 billion, up about 78% from a total of $1.17 billion in the third quarter of this year. Web services accounted for $521 million in third-quarter net income, more than 5 times the $98 million total in the third quarter a year ago.

Amazon shares are setting a new record in after hours trading, up about 11% at $625.00. If that number holds, Amazon easily posts a new all-time high during tomorrow’s regular session. The current 52-week range is $284.00 to $580.57. Thomson Reuters had a consensus analyst price target of around $650.65 before today’s report.

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