Amazon.com, Inc.’s (AMZN) net income falls, sales jump 15% in Q3

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Amazon.com, Inc.’s (AMZN) net income falls, sales jump 15% in Q3

 Amazon.com, Inc.’s (AMZN) net income falls, sales jump 15% in Q3
Image source: Sundry Photography,Shutterstock

Highlights

  • Amazon’s net sales increased by 15% to US$110.8 billion in the quarter from US$96.1 billion a year ago.

  • The Seattle, Washington-based company has spent billions of dollars to bolster its fulfillment network globally amid labor and supply chain issues.

  • Amazon expects net sales to be between US$130.0 billion and US$140.0 billion, or up 4% and 12% compared with the fourth quarter of the previous year.

E-commerce giant Amazon.com, Inc. (NASDAQ: AMZN) on Thursday posted a decline in net income to US$3.2 billion in the third quarter after incurring additional costs across its businesses.

Its operating income decreased to US$4.9 billion in the quarter from US$6.2 billion a year ago.

The Seattle, Washington-based company has spent billions of dollars to bolster its fulfillment network globally amid labor and supply chain issues.

Amazon CEO Andy Jassy said the company is making “extraordinary” investments across its businesses, aiming at long-term gains over short-term profits.

He expects investments to continue in the fourth quarter as it bolsters the consumer business.

Third-Quarter highlights

Amazon’s net sales increased by 15% to US$110.8 billion in the quarter from US$96.1 billion a year ago. However, the net income declined to US$3.2 billion, or US$6.12 per diluted share, from US$6.3 billion, or US$12.37 per diluted share, in the year-ago quarter.

Also, its operating cash flow dropped by 1% YoY to US$54.7 billion for the trailing twelve months that ended on September 30, 2021. The free cash flow fell to US$2.6 billion in the same period.

Fourth-Quarter Outlook

Amazon expects net sales to be between US$130.0 billion and US$140.0 billion, or up 4% and 12% compared with the fourth quarter of the previous year.

The operating income is expected to be between US$0 and $3.0 billion against US$6.9 billion in the fourth quarter of 2020.

Also Read: Linde (LIN) lifts guidance, Comcast (CMCSA) beats profit expectations

Amazon’s net sales increased by 15% to US$110.8 billion in the quarter from US$96.1 billion a year ago.

Source: Pixabay

Also Read: Yum! (YUM) beats profit estimates, Hershey (HSY) raises guidance

Stock Performance

The Amazon stock was trading at US$3333.99, down 3.27%, in the after-hours session at 5:35 pm ET. The stock gained around 4.6% YTD.

Its 52-week highest and lowest prices were US$3,773.08 and US$2,881.00, respectively.

Besides, its P/E ratio is 60.08, the forward P/E one-year ratio is 63.99, and the EPS is US$57.37.

Amazon’s market cap is around US$1.74 trillion.

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