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Sep 30, 2021
Amazon Q3 2021 Earnings Report
Amazon's third quarter results were announced, showing increased net sales but decreased operating and net income.
Key Takeaways
Amazon's Q3 2021 results revealed a 15% increase in net sales to $110.8 billion, but operating income decreased to $4.9 billion, and net income fell to $3.2 billion, or $6.12 per diluted share.
Net sales increased 15% to $110.8 billion, compared to $96.1 billion in Q3 2020.
Operating income decreased to $4.9 billion, compared to $6.2 billion in Q3 2020.
Net income decreased to $3.2 billion, or $6.12 per diluted share, compared to $6.3 billion, or $12.37 per diluted share, in Q3 2020.
AWS growth accelerated to 39% year over year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Amazon anticipates net sales between $130.0 billion and $140.0 billion, and operating income between $0 and $3.0 billion for Q4 2021.
Positive Outlook
- Net sales are expected to grow between 4% and 12% compared with fourth quarter 2020.
- Continued investments in innovation for retail customers.
- Expansion of faster Same-Day Delivery service to more cities.
- Introduction of new gift-giving features for Prime members.
- Growth in AWS with new customer commitments and migrations across major industries.
Challenges Ahead
- Operating income is expected to be between $0 and $3.0 billion, compared with $6.9 billion in fourth quarter 2020.
- Anticipates an unfavorable impact of approximately 60 basis points from foreign exchange rates.
- Expected to incur several billion dollars of additional costs in the Consumer business due to labor supply shortages.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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