Amazon will report its third-quarter earnings on Thursday, and will seek to rebound after its Q2 revenue fell short of expectations.
Amazon expects net sales of US$154 billion-$158.5 billion. This would be an 8-11% increase over last year’s Q3 revenue, and a 4-7% increase over Q2’s.
Its earnings per share are projected to drop to $1.13 from last quarter’s $1.26, but will remain above Q3 2023’s $0.94.
The company’s net income is also expected to fall $12.32 billion from last quarter’s $13.49 billion, due to increased expenses.
Amazon’s third-party e-commerce sales are among the company’s main growth drivers, and would reach $38.08 billion under consensus estimates, up 10.9% from last year.
Subscription sales, advertising, and physical retail are also projected to grow by 9.5%, 17.6%, and 4% over 2023’s Q3, respectively.
Amazon Web Services is the company’s fastest growing sector, having notched a 19% year-over-year increase last quarter. It held 31% of cloud computing’s market share in Q2, 6% above its closest competitor Microsoft Azure.
The company has also pushed further into artificial intelligence, with its AI shopping assistant Rufus rolling out in Canada and much of Europe this week.
Amazon held its annual Prime Day during Q3, with deals running from July 16-21.
Amazon’s (NASDAQ: AMZN) share price closed at $190.83, up from the day before’s $188.58. Its market cap is $2 trillion.