Home
>
Articles
>
Amazon Q3 results 2021: Amazon Quarterly Results for Q3 Date, Earnings, News & More

Amazon Q3 results 2021: Amazon Quarterly Results for Q3 Date, Earnings, News & More

Last updated: 01 Nov, 2021 | 12:58 pm

Amazon Q3 results 2021: Amazon Quarterly Results for Q3 Date, Earnings, News & More

Income falls: Amazon’s profits plunged to $3.2 billion in the third quarter, down by nearly 50% on year from $6.3 billion in the same quarter last year. Amazon posted earnings of $6.12 per share, well below Wall Street’s expectations of $8.92 per share, and down from $12.37 per share a year ago. Operating income decreased to $4.9 billion in the third quarter, compared with $6.2 billion in third quarter 2020. The weak bottom line performance was largely attributed to supply chain constraints and high labour costs.

Revenue rises: The revenue rose 15% to $110.8 billion, toward the high end of the company’s prior guidance but missing analyst expectations of $111.6 billion. Revenue in the same quarter last year stood at $96.1 billion. Still, this was a fourth consecutive quarter of revenue topping $100 billion. 

Segment Revenue: Amazon's key online store sales fell short of expectations in the third quarter, contributing to the slowdown in overall revenues. E-commerce sales were up 3% over last year to $49.94 billion, missing estimates for $51.53 billion. For the first time in Amazon’s history, the company’s revenue from online and physical retail store sales represented less than 50% of its overall revenue for the quarter, due to steady increases in areas such as its Amazon Web Services cloud business and revenue from advertising.

Amazon's AWS revenue rose 38.9% on year, to $16.1 billion. AWS generates much higher margins than its e-commerce business. In the third quarter, Amazon's global retail sales and subscription-based segments generated about 85% of the company's total revenue, while AWS accounted for a mere 15%. However, AWS accounted for 85% of the operating income across all of Amazon's business segments. The international sales and subscription-based business segment reported an operating loss of $911 million during the quarter.


Guidance for last quarter: Amazon expects its net sales for the fourth quarter to be between $130.0 billion and $140.0 billion, missing estimates for nearly $142 billion, based on Bloomberg consensus data. Operating income is expected to fall to somewhere between $0 and $3.0 billion, coming in well short of the $7.4 billion estimated. 

In the fourth quarter, the company expects to incur several billion dollars of additional costs in its Consumer business as they manage through labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs while doing whatever it takes to minimize the impact on customers and selling partners this holiday season.

Amazon Q3 brokerage review: Amazon has reported lacklustre set of numbers for the quarter ended Sep, well below analysts estimates.

Morgan Stanley lowered the target price to $4,000 from $4,100 and affirmed an Overweight: Margin pressures were guided to be even higher than estimated in Q4, due to the higher operating margin pressure on the retail business from more hiring, higher hourly labor costs, freight costs, and higher content spend.

Credit Suisse analysts raised the price target to $4,200 from $4,100 and kept an Outperform rating: Amazon's 1P inventory days are at the highest they have ever been heading into the holidays, and further as its ability to store 3P inventory is no longer capacity-constrained, it views this as an opportunity to pick up wallet share as it will have greater levels of merchandise availability vs the competition.

Goldman Sachs analysts lowered the price target to $4,100 from $4,250 and reiterated a Buy rating following its mixed results: Amazon is well positioned to navigate any potential supply chain driven inventory issues to meet consumer demand. While investors are likely to be disappointed by Amazon's operating profit narrative, the company is making a smart strategic move to crystallize e-commerce penetration gains from the pandemic period into more normalized consumer shopping velocity.

We are a SEBI registered investement advisor
Mutual Funds watchlist
aditya birla sun life flexi cap fund growth direct plan|ABSL low duration fund direct growth|axis bluechip fund direct growth|axis capital builder fund series 4|axis balanced advantage fund direct growth|axis equity saver fund direct growth|axis multicap fund direct growth|axis global innovation fund of fund direct growth|axis long term equity fund growth NAV|axis quant fund direct growth|axis small cap fund direct growth|axis value fund direct growth|baroda dynamic equity fund direct growth|BOI AXA bluechip fund|canara robeco flexi cap fund direct growth|canara robeco small cap fund direct growth|canara robeco value fund direct growth|DSP quant fund direct|franklin india smaller companies fund direct growth|HDFC arbitrage fund direct growth|HDFC balanced advantage fund direct growth|HDFC developed world index fund NAV|HDFC flexi cap fund direct growth|HDFC housing opportunities fund direct growth|HDFC hybrid equity fund direct growth|HDFC nifty 50 index fund|HDFC index fund sensex plan|HDFC mid cap opportunities direct plan growth|HDFC multi asset fund direct growth|HDFC small cap fund direct growth|HDFC top 100 fund direct growth|HSBC midcap fund direct growth|ICICI prudential balanced advantage fund|ICICI bluechip fund direct growth NAV|ICICI prudential commodities fund direct plan growth|ICICI nasdaq 100 fund direct growth|ICICI nifty next 50 index fund direct growth|ICICI small cap fund direct growth|ICICI prudential technology direct plan growth calculator|ICICI ultra short term fund direct growth|IDBI india top 100 equity fund direct growth|IDBI small cap fund direct growth|idfc us equity fund of fund direct growth|kotak short term fund direct growth|kotak emerging equity fund direct growth|kotak multicap fund direct growth|kotak global innovation fund of fund NAV|kotak gold fund direct growth|kotak savings fund direct growth|kotak small cap fund direct growth|L&T emerging businesses fund direct growth|mirae asset large cap fund direct growth|mirae asset midcap fund|motilal oswal nasdaq 100 fund of fund|navi nifty 50 index fund direct growth|nippon india banking and financial services fund direct growth|nippon banking fund direct|nippon india flexi cap fund NAV|nippon india large cap fund direct growth|nippon india pharma fund direct growth|nippon india small cap fund direct growth|PGIM small cap fund direct growth|quant flexi cap fund direct growth|quant infrastructure fund direct growth|quant tax plan direct plan growth|SBI bluechip fund direct growth|SBI corporate bond fund direct growth|SBI equity minimum variance fund direct growth|SBI flexi cap fund|SBI magnum children's benefit fund investment direct plan|SBI nifty index fund direct growth|SBI small cap fund direct growth|SBI technology opportunities fund direct growth|tata banking and financial services fund direct plan growth|tata business cycle fund|tata technology fund direct growth|tata equity pe fund direct growth|tata ethical fund direct growth NAV|tata focused fund direct growth|tata index fund nifty direct plan|tata india tax savings fund direct plan growth|UTI focused equity fund direct growth|UTI nifty index fund direct growth NAV|UTI nifty 50 index fund direct growth