Amazon Inc. has posted earnings for the third quarter and it is no surprise that the e-commerce giant has increased sales by 37 per cent year-on-year to US $ 96 billion.
The results fared better than analysts’ expectations which estimated a revenue of US $ 92.7 billion. Earnings per share were also US $ 12.37 as opposed to the estimated US $ 7.41.
Amazon has also released its fourth quarter guidance to expect revenue between US $ 112 and US $ 121 billion, marking a growth of 28-38 per cent from last year.
The guidance is in line with analysts who estimated US $ 112.3 billion.
Along with this, Amazon reported an increase in net income by 197 per cent and gross margins by 41 per cent compared to the previous year.
The e-tailer continues to be one of the biggest beneficiaries of the pandemic, and consumers have continued to turn to for everything from essential goods to groceries and household items.
Therefore, Amazon’s cost of shipping those goods to shoppers rose during the third quarter, with expenses up 57 per cent or US $ 15.1 billion from a year earlier.
Amazon is expecting a bigger inflow of orders during the holiday season, with shoppers likely to do majority of their gift shopping online instead of going out to the store.
“We’re seeing more customers than ever shopping early for their holiday gifts, which is just one of the signs that this is going to be an unprecedented holiday season,” Amazon CEO Jeff Bezos said in a statement.