Executive Summary

• Amazon.com reported 3Q18 earnings per share (EPS) of $5.75, beating the $3.08 consensus estimate and up sharply from $0.52 in the year-ago quarter. Revenues were $56.6 billion, up 29.3% year over year but missing the consensus estimate of $57.1 billion.
• Amazon Web Services (AWS) and North America were the fastest-growing segments, growing 46% and 35%, respectively. International revenues grew 13%.
• For 4Q18, Amazon guided for: revenues of $65.5–$72.5 billion, below the consensus estimate of $73.8 billion; and operating income of $2.1–3.6 billion, below the consensus estimate of $3.9 billion.