Amazon to report third-quarter earnings after the bell

Amazon‘s third-quarter earnings beat Street estimates, but its revenue and fourth-quarter outlook fell short of expectations, dropping its stock roughly 9 percent in after-hours trading — on pace for its lowest close since May.

show strong growth, jumping 46 percent in sales. Amazon’s “other” category, mostly comprised of its burgeoning advertising business, jumped 123 percent to $2.5 billion in revenue.

Net income, meanwhile, grew more than 10-times from the year-ago period, to a record-high $2.8 billion, marking the fourth straight quarter of topping $1 billion in profits. The $3.7 billion in operating income far-exceeded Street estimates of $2.1 billion. The widening profits are largely driven by the growth of Amazon’s high-margin businesses, including its cloud, advertising and third-party seller services.

“We were particularly impressed by the continued YoY operating margin expansion, which is consistent with our view the company has transformed into a ‘profit machine,’ driven by multiple tailwinds (most notably AWS, which posted an over 30% operating margin for the first time),” Loop Capital’s Anthony Chukumba said in a note published on Thursday.

In a prepared statement, Amazon CEO Jeff Bezos highlighted the growth of Amazon Business, its marketplace for business customers.

“Amazon Business has now reached a $10 billion annual sales run rate and is serving millions of private and public-sector organizations in eight countries,” Bezos said in a statement.

Amazon’s quarterly report comes amid a broader market sell-off that saw other tech stocks get hammered in recent weeks. Amazon stock is up roughly 49 percent this year.

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