On Thursday, American e-commerce giant Amazon is set to deliver its earnings report for the fourth quarter after the market closes. During the past year, the company delivered a strong growth as well as a renewed outlook for its investors and the markets as the company continues to develop and make a number of announcements regarding its businesses and future plans to expand its overall operations further.
Amazon Q3 Earnings and 2017 Performance
Shares of Amazon rallied to more than $1,000 per share following a positive earnings report during the third quarter from the company. During the previous quarter, analysts expected the e-commerce company to post losses after it made numerous acquisitions during the three-month period.
For the third quarter, revenue of the company still rose by 34% to $43.7 billion beating most analysts estimates of $41.6 billion for their revenue while their net income has also grown from $252 million to $356 million with the earnings of the company beating estimates at $0.52 per share. This surprised investors who expected losses from the company following its takeover of Whole Foods Inc for $13.7 billion.
Over the past couple of quarters, Amazon also experienced a surge in the sales of its Alexa-powered devices such as the Amazon Echo. Reports have revealed that the company was able to sell five times more devices compared to their 2016 sales and is expected to rise during the holidays.
Amazon’s Web Services have also grown over the past year and is set to be expanded by the company this year. During the AWS
Due to the massive rally in Amazon shares, analysts have forecasted that the market value of the company may hit $1 trillion in the coming months as a number of financial firms upgraded their individual stock rating on Amazon.
Fourth Quarter Expectations
Amazon who would be reporting its fourth-quarter earnings on Thursday is expected to post a revenue growth of 28% to 38% year over year to as much as $50 billion to $60 billion while the earnings of the company is expected to be at $1.85 per share while their full-year earnings are expected to come at $4.30 per share which is 10% lower.
Aside from growth in their sales, Amazon is also expected to make several more announcements regarding its services during the earnings release.
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