Amazon’s Q3 financials: sales up 23%, net income up more than half a billion dollars

Amazon’s Q3 financials: sales up 23%, net income up more than half a billion dollars

I’m getting ready to listen to Amazon’s 3rd quarter Webcast, but the

press release

is out.

Let me quote one line from the press release, then I’ll link you to the Webcast, and I’ll add to this post after the cast (the Q&A is often the best part).

“Net income was $79 million in the third quarter, or $0.17 per diluted share, compared with net loss of $437 million, or $0.95 per diluted share, in third quarter 2014.”

Here’s the link if you want to listen to the webcast live at 2:00 PM Pacific:

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=97664&eventID=5206611

More to come…

Update: okay, I’ve heard the webcast (including the Question and Answer period).

I’m not an investor, but to me, it felt like, “What’s not to like?”😉

We’ll see how the stock reacts, and I wouldn’t say I’m great at predicting that, but I would guess we’ll have a positive (or at least, not negative) reaction.

The Q&A was tellingly very little about consumer products. That’s been a change over time: the focus was on AWS (Amazon Web Services), Prime, and globalization (especially India).

New product launches were mentioned, including the new tablets, EBRs (E-Book Readers), and the Amazon Echo (at AmazonSmile: benefit a non-profit of your choice by shopping*) by the Amazon folks, but callers didn’t ask about them.

I felt like they had good and encouraging things to say for me as a consumer. They mentioned that they will continue to invest and innovate. They sounded excited about The Man in High Castle original Amazon programming, available to Prime members (and based on a book by Philip K. Dick). That’s what I want them to do: see making customers happy as key to making the whole rest of the company work.

As someone quite interested in how robots are beginning to share the planet (and beyond) with us, I was excited to hear that they had doubled the number of Kiva robots (they own the company) in their fulfillment centers…up to 30,000! That’s about the population of Juneau, Alaska, I think.😉 They indicated that was going to expand, which I think is a good thing.

I’ll be interested in my readers analysis of this…they are often insightful, and that benefits me and my readers. If you have something to say about this, feel free to do so by commenting on this post.

Oh, pre-update update: the stock is soaring, hitting new highs and up 10% on this news! See

CNN Money post by David Goldman

When you shop at AmazonSmile, half a percent of your purchase price on eligible items goes to a non-profit you choose. It will feel just like shopping at Amazon: you’ll be using your same account. The one thing for you that is different is that you pick a non-profit the first time you go (which you can change whenever you want)…and the good feeling you’ll get. :) Shop ’til you help! :) 

This post by Bufo Calvin originally appeared in the I Love My Kindle blog. To support this or other blogs/organizations, buy  Amazon Gift Cards from a link on the site, then use those to buy your items. There will be no cost to you, and a benefit to them.

8 Responses to “Amazon’s Q3 financials: sales up 23%, net income up more than half a billion dollars”

  1. Phyllis Jeanne Caron-Valeriano Says:

    Hi Bufo,
    I have been following you since around 2008. Two things I want to tell you today: 1) I thought once I signed up for Smile everything I would buy at Amazon would help my chosen organization. I was wrong. Why? Because I thought everything was automatic. Could you please say SPECIFICALLY “Each time you want to buy something, you need to go the Smile Amazon website. (and give that URL)” ? People my age (76) did not grow up with this technology and sometimes we can be a little thick headed. 2) I bought a new Fire 10 (and also 1 new 7 Fire for a Christmas gift). My 10 was delivered 2 days ago. It has NO USB port even though author Charles Tulley shows one pictured on page 2 of his book (a user’s manual for Fire) says it is supposed to have one. (My 7 has yet to be delivered.) Also Professor Jack formerly of UCONN Technology department (now retired) says I cannot use Microsoft Office suite on my Fire. What program to you use instead of Microsoft Word? I need Word for the classes I attend at my local college. I take classes locally so my brain will not go too soft. Keep up the good work! I wait every day for your ILMK blog to arrive on my Kindle EBR (recently Paperwhite which I got because you said it was a good choice). My regards to your SO and pet your dogs for me.
    Respectfully,
    Phyllis

    • Bufo Calvin Says:

      Thanks for writing, Phyllis!

      Thanks for being one of the original readers!🙂

      Two things:

      I generally put in two links to Amazon items. The first one will go to the item at Amazon.com, and the second one will say, “at AmazonSmile”. For example, it might look like this:

      Amazon Echo (at AmazonSmile: benefit a non-profit of your choice by shopping*)

      In that case, you click inside the parentheses…I think you’ll be able to tell there are two separately underlined links…that’s why I use the parentheses.🙂

      Hm…I also thought that I had a link to the AmazonSmile homepage at the bottom of the posts. It might have been a copy error (sometimes, WordPress loses the hyperlink when I copy something). I’ll fix that: thanks!

      The Fire 10 does have a USB port (that’s the hole where the plug goes that you use to charge it…you can also connect to a computer that way, and it has a micro SD card slot. You can see pictures of them on the product page:

      http://www.amazon.com/gp/product/B00VKIY9RG/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B00VKIY9RG&linkCode=as2&tag=bufosweirdworld&linkId=CQ254UQZULRPG2G5 (at AmazonSmile)

      Hopefully, those two help!

      When I get the post done on my 7″, that should help you, too…a lot of the menu options will be the same, although you’ll have more (“trace typing” and dictation, I believe).

  2. Edward Boyhan Says:

    Today was an interesting one. There was an article in the WSJ:
    http://on.wsj.com/1PJZtN1
    about landlords being crushed by the rise in package deliveries due to increased online shopping by their tenants — there is even a photo of one package room chock full of Amazon boxes (:grin).

    Then there was an article commenting on how Amazon’s market capitalization is now larger than Walmart’s (has been so since July), and that’s odd because Walmart’s revenue is four times that of Amazon. Funny thing: I can remember 3 or 4 years ago when I started covering Amazon in detail that Walmart’s revenues were eight times Amazon’s! Amazon is on a tear: their stock is up almost 10% in after hours trading to almost $620.

    The call was kind of boring at times. Even the analysts just seemed to be going through the motions. Amazon is just not very forthcoming beyond the black&white of their financial reports.

    The information about Kiva was interesting as was the fact that they now have around 124 fulfillment centers, and over 20 sortation centers — these latter seem to be increasingly important in delivery execution.

    When I started listening to these calls a few years back, Amazon had only 30-40 fulfillment centers, and no sortation centers (sales tax issues kept these numbers low IMO). Back in the day deliveries to me from Amazon came via UPS and Fedex — these days almost all of my deliveries come via USPS (only a few from UPS, and none from Fedex). The USPS experience has been great with even Sunday and holiday deliveries — Although I have journalist friends in other parts of the country that say the USPS experience is rotten.

    In their PR released with the financials was a statement that the public can now take tours of its fulfillment centers at 18 locations around the country. I wonder if any of those are Kiva locations — I’d really like to tour a Kiva equipped FC (:grin). The increase in robot deployment from 15,000 to 30,000 only increased Kiva FC penetration from 10% to 15% — so I wonder if this indicates they are starting to roll Kiva out at the larger FC’s?

    The call went from 5:00-5:40 EDT so I then turned to the MS call which started at 5:30. Boy what a difference — the amount of detail, and back and forth with the analysts was far greater than with Amazon. Just about every analyst congratulated MS on a great quarter, whereas none of the analyst on the Amazon call did so — yet both reports were very good.

    I watched the first episode of the Man in the High Castle about three weeks ago, and then I immediately bought the eBook so I could reread the Phillip K Dick novel, which I had read many many years ago. I have to say I found the book a bit dry — only gave it 3 stars. The video series (based on the pilot) looks to be a lot better — more exciting with a more convoluted plot. I will look forward to the whole series. I also watched the whole first season of Bosch which was excellent, and tracked the books well — I can’t wait for season 2😀

    • Bufo Calvin Says:

      Thanks for writing, Edward!

      On the analysts congratulating Microsoft and not Amazon…Amazon has never been a kiss-up to stockholders.🙂 They’ve always talked about the long view, which doesn’t benefit commercial investors. It helps someone who is going to buy a single share and hold on to it for twenty years, but those folks aren’t speaking on the call.

      Amazon has always sort of made a point of not making decisions to make the investors love them…and they’ve succeeded.😉

      I liked the book of The Man in the High Castle, but as is often the case with PKD, it was more about concepts than people. I watched the pilot…I’ll check out more of it.

      Haven’t read the Bosch books and the series hasn’t intrigued me…but I might try it. You know, after I finish re-watching the original The Outer Limits on Hulu.😉

  3. rogerknights Says:

    The instant drop in the stock was largely due to the action of “bots” that automatically place trades for big funds based on their reading of newsfeed. If earnings come in below the consensus estimate, as they did for Amazon this time, they are programmed to sell first and ask questions later.

    They way I stayed happy, or rather less unhappy, at the racetrack was by betting on Show rather than Win or Place. I won more often that way, although I might be down at the end of the day.

    • Bufo Calvin Says:

      Thanks for writing, rogerknights!

      Good observation about the algae…er, algorithms!😉

      Oh, I often bet to Show…with a long shot, that can work out well. We have had the luxury of having Russell Baze riding at many of the days we’ve been at the races. Retired now, but Baze was the winningest jockey in US history, I believe. Betting Russell to Show was about as close to a sure thing as you could get.😉 You wouldn’t get much, though…maybe a dime profit in some cases.

      For those who don’t know, Win is coming in first, Place is coming in first or second, and Show is coming in 1st, 2nd, or third. There are other bets, too, but those three are the basics.

  4. rogerknights Says:

    PS: Here’s the Washington Post’s pro-Amazon story on these events, “Amazon’s profit triples to $252 million, but that’s not enough for Wall Street”, at:
    https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=0ahUKEwjhvsut3P3PAhVFqVQKHftrCzMQFgglMAI&url=https%3A%2F%2Fwww.washingtonpost.com%2Fnews%2Fbusiness%2Fwp%2F2016%2F10%2F27%2Famazons-profit-triples-to-252-million-but-thats-not-enough-for-wall-street%2F&usg=AFQjCNFqWG6B893wfaLjaCGweOkao16R2A&sig2=DI7pUyIlHtLMBVXJ0Ja99g

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