Amazon Pumps Q3 Revenue Up 29% But Misses Profit Target, Touts TV and Film Slate
Amazon raked in $32.69 billion for the third quarter of 2016, up 29% year over year, but earnings fell short of Wall Street expectations.
The company’s net income more than tripled, to $252 million (52 cents per diluted share) versus $79 million in the year-earlier period. Analysts had expected Amazon to report $32.69 billion in revenue and EPS of 78 cents. Still, it’s Amazon’s sixth consecutive quarter posting a profit, after the e-commerce giant’s years of red ink.
The Amazon Web Services cloud-computing division continued to shine with sales of $3.23 billion, up 55% year over year, with operating income more than doubling to $861 million.
Notably, in detailing highlights from the September quarter, Amazon led the list with its Hollywood initiatives — laying out the original movies and series it has bowed and those that are set to come to Amazon Prime Video over the next few months.
In July, CFO Brian Olsavsky said Amazon expects to double its content spending in the second half of 2016 versus the same period in 2015, as it nearly triples the number of Amazon original TV shows and movies.
That includes the theatrical debut of “Manchester by the Sea,” an audience favorite at the Sundance Film Festival and Toronto Film Festival, as well as exclusive Prime Video premieres of original series including season 2 of “The Man in the High Castle,” the most-watched original series on Prime Video; “The Grand Tour” with former “Top Gear” hosts Jeremy Clarkson, Richard Hammond and James May; and season 3 of “Mozart in the Jungle,” the third season of the Golden Globe-winning series.
During the quarter, Amazon Studios released “Gleason,” “The Dressmaker,” “The Handmaiden,” and “Author: The JT LeRoy Story” in theaters nationwide. Each film will be available exclusively to Prime members through Prime Video following its theatrical release.
Amazon also debuted five original series, including the third season of award-winning series “Transparent,” and the freshman seasons of “One Mississippi,” “Fleabag,” Woody Allen’s first TV series, “Crisis in Six Scenes”; and David E. Kelley’s “Goliath,” starring Billy Bob Thornton.
In addition, Amazon called out its six 2016 Emmy Awards wins, including the second wins for “Transparent’s” Jeffrey Tambor and Jill Soloway for lead actor and directing for a comedy series, respectively.
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