=Amazon (AMZN) reported earnings on Thur 26 Oct 2017 (a/h)

Amazon beats by $0.53, beats on revs; guides Q4 revs in-line 

• Reports Q3 (Sep) earnings of $0.52 per share, $0.53 better than the Capital IQ Consensus of ($0.01); revenues rose 33.7% year/year to $43.74 bln vs the $42.26 bln Capital IQ Consensus. Net sales includes $1.3 billion from Whole Foods Market, which Amazon acquired on August 28, 2017. Excluding Whole Foods Market and the $124 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 29% compared with third quarter 2016.
  • NA net sales +34% to $18.9 bln; OI $255 mln
  • Int'l net sales +29% to $10.6 bln; OI ($541) mln
  • AWS sales +42% ; OI +36% to $1.17 bln
• Operating income decreased 40% to $347 mln vs. ($400)-300 mln guidance, compared with operating income of $575 million in third quarter 2016. Operating income includes income of $21 million from Whole Foods Market.
• Co issues in-line guidancefor Q4, sees Q4 revs of +28-38% to ~$56.0-60.5 bln vs. $58.92 bln Capital IQ Consensus. This guidance includes ~1,000 basis points of impact to our year-over-year growth rate from Whole Foods Market. This guidance also anticipates a favorable impact of ~$1.2 billion or 270 basis points from foreign exchange rates. Operating income is expected to be between $300 million and $1.65 bln vs. $1.64 bln ests, compared with $1.3 billion in fourth quarter 2016.
• "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 Jeff Bezos, Amazon founder and CEO. "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."