Amazon's 3Q results miss analysts' estimates, but posts solid sales gains in cloud computing unit

NEW YORK (AP) — Amazon delivered fiscal third-quarter profits and net sales that came below Wall Street analysts' expectations but posted strong growth in its prominent cloud computing unit .

The Seattle-based company also offered on Thursday a cautious outlook for the company's fiscal fourth-quarter period.

Amazon said sales in its cloud computing unit called AWS rose 39.3% during the latest quarter ended Sept. 30, higher than the 37% clip in the previous quarter. It marked the fastest growth rate in nearly five years, the company said.

Shares were down more than 6% in after-market trading when the results were released as investors focused on the core business.

Amazon reported net income of $20.69 billion, or $1.89 per share, in the three-month period. That compares with $21.19 billion, or $1.95 per share, in the year ago period.

Sales rose to $201.94 billion, compared with the same year-ago period's $180.17 billion.

Analysts were expecting $1.97 per share on sales of $202.2 billion, according to FactSet.

Analysts will be looking for any comments from Amazon executives on the earnings call Thursday about the holiday shopping season. The tech giant said earlier this month that it would be hiring 300,000 U.S. seasonal workers for the shopping period. That's up from 250,000 last year.