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Amazon.com Earnings, Revenue Miss in Q3

Published 29/10/2021, 07:30 am
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Investing.com - Amazon.com (NASDAQ:AMZN) reported on Thursday third quarter earnings that missed analysts' forecasts and revenue that fell short of expectations.

Amazon.com announced earnings per share of $6.12 on revenue of $110.8 billion. Analysts polled by Investing.com anticipated EPS of $8.91 on revenue of $111.62 billion.

When it comes to Amazon's AWS platform, the company said it saw "significant customer momentum, with new commitments and migrations from customers across major industries during the quarter."

AWS net sales came in at $16.11 billion, above the $11.6 billion reported in Q3 2020.

Looking ahead, the company anticipates Q4 net sales to be between $130 billion and $140 billion, or to grow between 4% and 12% compared with Q4 2020, below estimates of $142 billion. Operating income for Q4 is expected to be between $0 and $3 billion, compared with $6.9 billion during the same period in 2020.

The company's CEO Andy Jassy said it is expecting to incur billions in additional costs in the fourth-quarter due to labor shortages and supply chain issues.

"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,” said Jassy.

Amazon shares have fallen 4% after hours, down to $3,307.56.

Amazon.com's report follows an earnings beat by Visa A on Tuesday, who reported EPS of $1.62 on revenue of $6.56 billion, compared to forecasts EPS of $1.55 on revenue of $6.52 billion.

Netflix had beat expectations on October 19 with third quarter EPS of $3.19 on revenue of $7.48 billion, compared to forecast for EPS of $2.57 on revenue of $7.48 billion.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar

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