Amazon.com, Inc. (NASDAQ: AMZN) shares soared to new record highs after reporting a third-quarter sales beat, where revenues were up 34 percent in the quarter. After taking over Whole Foods, Amazon slashed prices, added its logo on signs and set up a stand of "farm fresh" Amazon Echo voice-assistant devices by store entrances.
Still, Amazon shares were up by as much as 8 percent in extended hours, and have grown 30 percent year-to-date.
Amazon's turned in earnings of 52 cents per share, the same EPS as last year's third quarter.
Amazon who are now tipping millions moving into new markets including Australia, has seen their shares rise 7% after reporting a 35% lift in United States revenues and a 29% lift in global sales. It posted a 41.9 per cent rise in sales to $4.58 billion, beating the average estimate of $4.52 billion, according to analytics firm FactSet. That's up from $32.7 billion in sales during the same period past year and far above the $41 billion analysts expected, MarketWatch reported.
This guidance includes growth from the Whole Foods business and favourable foreign exchange rates.
In Whole Foods' fourth quarter of 2016, which ended on September 25, it had $3.5 billion of sales.
Amazon's profit is going toward a dizzying number of investments: warehouses for faster shipping, data centers for AWS, and a 77 per cent increase in employees last quarter, including Whole Foods workers. Amazon CFO Brian Olsavsky said there will be a lot more integration between the two companies in the future.
Also thanks to the Whole Foods deal, Amazon's headcount is now at 541,900, up from 382,400 last quarter.
The company spelled out a long list of new products it had rolled out in the quarter.
Amazon generated 59 percent of its sales in North America, where it is now scouting a site for a second company headquarters.
Prime Day, a summer marketing event Amazon has created to replicate the shopping frenzy that is more typical of the winter holiday season, helped boost sales. The company plans to announce a decision sometime next year.
Amazon also kicked off its National Football League live streaming deal and suspended the head of its studio division, Roy Price, after sexual harassment claims made against him.
"We have not backed off our strategy", he said.
Net sales for the fourth quarter, the company said, are expected to be between 56 billion and 60.5 billion dollars or to grow between 28 percent and 38 percent compared with fourth quarter 2016.
The company's earnings conference call with investors and analysts starts at 2:30 p.m.