Shares of Amazon (NASDAQ:AMZN) gained in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2023. Earnings per share came in at $0.94, which beat analysts’ consensus estimate of $0.59 per share.
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Sales increased by 13% year-over-year, with revenue hitting $143.1 billion. This beat analysts’ expectations by $1.54 billion. Amazon Web Services (AWS) raked in $23.1 billion, marginally lower than the $23.2 billion expected. On the other hand, the tech giant’s advertising grew to $12.1 billion, against an expected $11.6 billion.
Looking forward, management now expects revenue for Q4 2023 to be in the range of $160 billion to $167 billion. It also predicted that operating income will range from $7 billion to $11 billion, up from $2.7 billion in the fourth quarter of 2022. For reference, analysts were expecting $167.04 billion in revenue.
Is Amazon Stock Good Value?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 32 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average AMZN price target of $174.06 per share implies 45.39% upside potential.