Amazon Tops Wall Street Estimates: Q3 Net Profits Reach $256 Million

By any measure, Amazon had a busy Q3: the retailer completed its $13.7 billion acquisition of Whole Foods, increased investments in fulfillment centers and content and kicked off its search for a second headquarters. But despite the heavy spending, Amazon still reeled in $256 million in Q3 net profits, or $0.52 per share.

This number vastly exceeds the $0.03 EPS anticipated by Thomson Reuters — and shows that even in a quarter of outlandish spending, Amazon still manages to stay profitable. On top of the income boost, the retailer also saw:

  • Net sales increased 34% to $43.7 billion;

  • Amazon Web Services (AWS) sales rose 42% to $4.58 billion;

  • The stock price rose nearly 8% in after-hours trading on Oct. 26.

Amazon also set its guidance for Q4 net sales, projecting between $56 billion and $60.5 billion, which would bring year-over-year growth into the 28% to 38% range.

The quarterly…