NASDAQ$AMZN

Amazon.com Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Amazon's third quarter results showcased substantial growth in net sales and operating income, driven by increased customer demand and strong performance across all segments.

Amazon.com announced impressive financial results for the third quarter ended September 30, 2020, with net sales increasing by 37% to $96.1 billion and operating income rising to $6.2 billion. Net income also saw a significant increase to $6.3 billion, or $12.37 per diluted share.

  • Net sales increased 37% to $96.1 billion compared to Q3 2019.
  • Operating income increased to $6.2 billion, up from $3.2 billion in Q3 2019.
  • Net income rose to $6.3 billion, or $12.37 per diluted share, compared to $2.1 billion, or $4.23 per diluted share, in Q3 2019.
  • The company continues to invest in job creation, community support, and sustainability initiatives.

Headline financials

Total Revenue

$96.1B

Previous: $70B+37.4%
EPS (adj)

$0.62

Previous: $0.21+195.2%
Operating margin

6.4%

No prior period
Free Cash Flow

$6.33B

Previous: $2.13B+196.7%
Net Income

$6.33B

Previous: $2.13B+196.7%
Operating Income

$6.19B

Previous: $3.16B+96.2%
Gross Profit

$39B

Previous: $28.7B+36.1%
Cash & Equivalents

$29.9B

Previous: $23.3B+28.7%
Total Assets

$282B

Previous: $199B+41.7%

Revenue & EPS history

Amazon · Revenue · Quarterly

$96.1B

Q3 2020+37.4%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Amazon · $96.1B total across 3 segments · Q3 2020

  • North America
    $59.4B+39.2%
  • International
    $25.2B+37.2%
  • AWS
    $11.6B+29.0%

Forward guidance

Amazon provided financial guidance for the fourth quarter of 2020, projecting net sales between $112.0 billion and $121.0 billion, representing growth between 28% and 38% compared to Q4 2019. Operating income is expected to be between $1.0 billion and $4.5 billion, compared to $3.9 billion in Q4 2019, which includes approximately $4.0 billion of costs related to COVID-19.

Tailwinds

  • Net sales are expected to grow between 28% and 38% compared to Q4 2019.
  • Guidance anticipates a favorable impact of approximately 90 basis points from foreign exchange rates.
  • Continued growth in customer demand and spending.
  • Strong performance expected across various business segments.
  • Ongoing investments in strategic areas to drive future growth.

Headwinds

  • Operating income is projected to be between $1.0 billion and $4.5 billion, a wide range reflecting uncertainty.
  • Guidance assumes approximately $4.0 billion of costs related to COVID-19.
  • Results may be materially affected by fluctuations in foreign exchange rates.
  • Changes in global economic conditions and customer spending could impact performance.
  • The ultimate impact of the COVID-19 pandemic on operations remains uncertain.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.7%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+0.5%

Avg return

30 days after

47%

31 / 66 earnings

Positive

+18.4%

Q1 2012

Best reaction

-10.6%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%+4.0%+2.9%
Q4 2025-5.6%-8.4%-4.3%
Q3 2025+1.9%+12.3%+4.6%
Q2 2025-6.2%-5.0%-2.2%
Q1 2025-0.2%-0.8%+7.8%
Q4 2024-4.1%-4.1%-16.6%
Q3 2024+2.7%+3.5%+7.9%
Q2 2024-10.2%-13.4%-4.5%
Q1 2024-1.1%+2.9%-0.9%
Q4 2023+10.7%+9.0%+14.8%
Q3 2023+5.2%+9.6%+20.9%
Q2 2023+8.9%+9.1%+7.7%
Q1 2023+0.4%-1.3%+14.4%
Q4 2022-1.7%-2.9%-9.7%
Q3 2022-10.6%-16.3%-19.2%
Q2 2022+11.6%+10.9%+8.1%
Q1 2022-10.1%-10.1%-16.7%
Q4 2021+4.7%+7.2%-3.3%
Q3 2021-0.6%-2.4%+3.3%
Q2 2021-8.3%-7.3%-7.7%
Q1 2021+0.3%-4.2%-6.8%
Q4 2020-0.9%+0.3%-10.9%
Q3 2020-4.0%-3.6%+1.0%
Q2 2020+4.3%+3.5%+12.1%
Q1 2020-3.7%-2.3%+2.9%
Q4 2019+8.1%+10.3%+1.4%
Q3 2019-0.0%+0.0%-0.9%
Q2 2019-2.9%-5.1%-12.6%
Q1 2019+2.6%+1.3%-4.1%
Q4 2018-2.6%-0.7%+0.1%
Q3 2018-1.3%-8.0%-9.7%
Q2 2018-2.5%-4.6%+2.2%
Q1 2018+7.7%+8.4%+10.3%
Q4 2017-1.4%-0.6%+3.4%
Q3 2017+13.2%+13.6%+21.9%
Q2 2017-3.1%-5.4%-10.2%
Q1 2017+1.7%+4.1%+9.5%
Q4 2016-2.7%-2.4%+2.1%
Q3 2016-5.6%-4.5%-5.1%
Q2 2016+3.0%+3.2%+4.4%
Q1 2016+8.7%
Q4 2015+0.6%
Q3 2015+7.8%
Q2 2015+8.4%
Q1 2015+14.2%
Q4 2014+16.6%
Q3 2014-8.3%
Q2 2014-9.5%
Q1 2014-6.4%
Q4 2013-6.7%
Q3 2013+11.2%
Q2 2013+4.3%
Q1 2013-5.2%
Q4 2012-1.2%
Q3 2012+4.3%
Q2 2012+9.4%
Q1 2012+18.4%
Q4 2011-6.5%
Q3 2011-9.0%
Q2 2011+4.6%
Q1 2011+6.9%
Q4 2010-8.0%
Q3 2010+2.4%
Q2 2010-1.3%
Q1 2010-1.9%
Q2 2009-10.2%

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