Amazon Misses On Earnings

Amazon ($AMZN@US) shares dropped more than 4% in extended trading on Thursday after the company reported weaker-than-expected results for the third quarter and delivered disappointing guidance for the holiday period. Earnings were $6.12 per share versus the expected $8.92, and revenue was $110.81 billion instead of the $111.6 billion expected. Amazon is reckoning with decelerating sales growth as consumers go back to physical stores and the company faces supply chain challenges. Revenue in the third quarter rose 15%, down from 37% growth in the same period a year ago. For the fourth quarter, Amazon forecasts sales between $130 to $140 billion, representing growth between 4 and 12%. Revenue was expected to rise 13.2% year-over-year. The company expected to take on extra costs as a result of labor shortages, higher employee costs, global supply chain constraints, and increased freight and shipping costs. Amazon has taken steps to shore up its supply chain by adding new shipping ports and boosting its fleet of planes and trucks.