Scout Daily Update: Amazon.com, Inc. (AMZN) Misses EPS Expectations

STOCK NEWS

Amazon.com, Inc. (NASDAQ:AMZN): reported Q3 EPS of $0.52 which missed expectations by $0.26. Revenues of $32.7 billion were up 28.9% and in-line with expectations. North American revenue was $18.874 billion which was up 26% year over year. International revenue was $10.609 billion which was up 28% year over year.

Amazon Web Services revenue was $3.231 billion which was up 55%. Q4 net sales are expected to be $42-$45.5 billion which would be up 17%-27%. Operating income is expected to be $0-$1.25 billion, compared to last year’s income of $1.1 billion.

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Alphabet Inc (NASDAQ:GOOGL): reported EPS of $9.06 which beat estimates by $0.43. Revenue was $22.45 billion which was up 20.2% and beat estimates by $400 million. Google revenues were $22.254 billion which was up from $18.534 billion last year. Google operating income was $6.778 billion which was up from $5.807 billion. Other bets revenue was $197 million which was higher than last year’s $141 million last year. Other bets operating loss was $865 million versus a loss of $980 million last year.

Exxon Mobil Corporation (NYSE:XOM): reported Q3 EPS of $0.63 which beat estimates by $0.05. Revenues of $58.7 billion were down 12.8% year over year and missed estimates by $2.64 billion. Q3 profit in the exploration and production (upstream) business fell 16% to $620 million. In America, upstream loss was $477 million which was worse than last year’s $442 million. Q3 profit in the refining and marketing, or downstream, business declined 40% to $1.2 billion. The firm blamed weak refining margins on segment earnings, having a $1.6 billion negative effect. Volume and mix helped earnings by $170 million.

Chevron Corporation (NYSE:CVX): reported Q3 EPS of $0.68 which beat estimates by $0.31. Revenue of $30.14 billion was down 12.2% and beat estimates by $1.09 billion. The upstream business lost $212 million which was better than the $603 million loss last year. This was helped by lower operating and depreciation expense and hurt by lower tax items. Downstream profits fell 52% to $1.07 billion. Margins in this business fell internationally and in the U.S.

ECONOMIC NEWS

Consumer sentiment fell again which is a bad sign for the holiday season which is approaching. It is now at a 2 year low. The GDP growth report was good if you look at the 2.9% headline number, but when you delve deeper, you can see 0.9% of the growth was caused by a temporary increase in soybean exports because of poor harvests in Brazil and Argentina. This result may increase the chances of a fed rate hike, but I still think the Fed is bluffing.