Online retail giant Amazon has posted record profits for Q3 in its latest financial results for the period ending 30 September 2018.
Despite the company reporting its net income had increased to $2.9bn (£2.3bn), its shares fell by 9% as its sales and sales forecast came in below Wall Street estimates. Net sales increased 29% to $56.6bn (£44.1bn) in Q3, compared with $43.7bn (£34bn) the same period in 2017 but was lower than the $57.1bn (£44.5bn) analysts had estimated.
It is the fourth consecutive quarter that the company’s profits exceeded $1bn (£800m) and the figure marks its largest profit to date. In Q3 last year, Amazon saw a net income of $256m (£199m). Operating income increased to $3.7bn (£2.9bn) during the three-month period, compared with operating income of $347m (£270m) in the previous year.
Jeff Bezos, Amazon founder and CEO, said: “Amazon Business has now reached a $10bn (£7.8bn) annual sales run rate and is serving millions of private and public-sector organisations in eight countries. And we’re not slowing down – Amazon Business is adding customers rapidly, including large educational institutions, local governments, and more than half of the Fortune 100.
“These organisations are choosing Amazon Business because it increases transparency into business spending and streamlines purchasing, with increased control. The team is doing a fantastic job building and innovating for customers.”