Amazon.com Inc (NASDAQ:AMZN) reported better-than-expected results for the third quarter of fiscal year 2024 on Thursday, with growth across key business segments boosting the stock in after-hours trading.
The company’s net sales rose 11% year-over-year to $158.9 billion, outpacing Wall Street’s estimates by $1.6 billion, driven by robust growth in Amazon Web Services (AWS) and international sales.
AWS, the company’s cloud-computing division, posted a 19% revenue increase to $27.5 billion with an operating margin of 38%, up 8% year-over-year, highlighting the cloud unit's profitability.
International sales rose 12% to $35.9 billion, while Amazon's operating margin expanded to 11%, up 3% from the prior year,
Looking ahead, Amazon provided a cautious fourth-quarter revenue forecast of approximately $185 billion, which fell short of analysts' expectations by $1.3 billion, indicating potential headwinds in the peak holiday season.
Nevertheless, shares of Amazon rose nearly 4.4% in extended trading as investors reacted to the better-than-expected Q3 results.