Amazon Q3 Sales, Net Income Up With Whole Foods Addition

Q3 Results

AMAZON third-quarter net sales increased 34% to $43.7 billion (including $1.3 billion from the acquisition of WHOLE FOODS MARKET), while operating income fell 40% to $347 million (including $21 million from WHOLE FOODS). Net income rose slightly from $252 million to $256 million (per-share flat at 52 cents).

“In the last month alone, we’ve launched five new Alexa-enabled devices, introduced Alexa in India, announced integration with BMW, surpassed 25,000 skills, integrated Alexa with Sonos speakers, taught Alexa to distinguish between two voices, and more. Because Alexa’s brain is in the AWS cloud, her new abilities are available to all Echo customers, not just those who buy a new device,” said CEO JEFF BEZOS. “And it’s working — customers have purchased tens of millions of Alexa-enabled devices, given Echo devices over 100,000 5-star reviews, and active customers are up more than 5x since the same time last year. With thousands of developers and hardware makers building new Alexa skills and devices, the Alexa experience will continue to get even better.”

Fourth quarter 2017 guidance is for net sales between $56 and $60.5 billion (28-38% growth, including favorable impact of both the WHOLE FOODS acquisition and exchange rate fluctuation).  Operating income is projected to be between $300 million and $1.65 billion, compared with $1.3 billion in fourth quarter 2016.

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