Inc. Earnings Report (Q3 2021)

Amazon’s earnings report badly falls short of expectations, causing the stock to sharply dip.
2 min read
Amazon Boxes Inc’s third quarterly earnings are in – and the company misses expectations by considerable margins and gives a disappointing Q4 financial outlook.

Revenue, or net sales, came in at $110.8 billion, an increase of 15% compared to Q3 2020. Analysts were expecting around a figure of $111.6 billion.

Operating income decreased to $4.9 billion, down from the $6.2 billion reported in Q3 2020.

Earnings per share (EPS, diluted) came in at $6.12 – missing analyst’s expectations of $8.92 considerably.

In a statement, Amazon CEO Andy Jassy said:

“We’ve always said that when confronted with the choice between optimizing for short-term profits versus what’s best for customers over the long term, we will choose the latter—and you can see that during every phase of this pandemic,”

“In the first several months of COVID-19, Amazonians played an essential role to help people secure the requisite PPE, food, and other in-demand items needed, and we worked closely with businesses and governments to leverage AWS to maintain business continuity as they responded to the pandemic. Customers have appreciated this commitment, which is part of what’s driving this past quarter’s AWS growth acceleration to 39% year over year; but, it’s also driven extraordinary investments across our businesses to satisfy customer needs—just one example is that we’ve nearly doubled the size of our fulfillment network since the pandemic began. In the fourth quarter, we expect to incur several billion dollars of additional costs in our Consumer business as we manage through labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs—all while doing whatever it takes to minimize the impact on customers and selling partners this holiday season. It’ll be expensive for us in the short term, but it’s the right prioritization for our customers and partners.”

Net sales for Q4 are expected to be between $130 and $140 billion, being between a 4% and 12% increase from Q3 2020. Operating income is expected to be between $0 and $3 billion.

Shares of Inc. fell by a steep 4.7% ($164) in extended trading on Thursday to $3,285.55 per share.

Written By

Security Cameras

Why use a VPN

Cloudflare Inc. Earnings Report (Q3 2021)