Andy Jassy, chief executive officer of Amazon.Com Inc., speaks during the GeekWire Summit in Seattle, Washington, US, on Tuesday, October 5, 2021.
David Ryder | Bloomberg | beautiful pictures
Amazon will report fourth-quarter earnings after the bell on Thursday.
Here’s what Wall Street expects:
- Earnings per share: $3.57, according to Refinitiv survey of analysts
- Turnover: $137.6 billion, according to Refinitiv survey of analysts
- AWS Revenue: $17.37 billion, according to StreetAccount
Amazon is wrapping up an earnings season with a rollercoaster ride for big tech companies. Netflix The stock crashed late last month after a weak subscriber outlook spooked investors. Optimistic income from Apple, Microsoft and Google’s parents Alphabet in recent days suggests the season could end on a high, but then Facebook revealed sluggish user growth, sending its stock plunging and dragging down other social media stocks.
Among the top tech companies, Amazon is worst performance last year, with the stock up just 2.4%. It is down 16% so far in 2022, as investors withdraw from the sector due to concerns about inflation and rising interest rates.
Analysts expect Amazon to record year-over-year revenue growth of just under 10% in the fourth quarter, which includes the peak holiday shopping season. That will be the first period of single-digit growth since the third quarter of 2017.
Profits are expected to fall to $3.68 per share from $14.09 per share a year ago. In recent quarters, earnings fell and sales growth decelerated as the company adjusted for the downturn in the e-commerce crash caused by the pandemic, global supply chain constraints and labor shortage.
Amazon has profited from physical expansion, with Jefferies analysts estimating the company has opened 350 new facilities by 2021. It salary also increased averaging $18 an hour to engage workers and has increased the incentive, offering signing bonuses of up to $3,000 in select markets.
In some cases, labor shortages forced Amazon to reroute packages over longer and more expensive distances to facilities with enough staff to process them.
CEO Andy Jassy, who succeeded Jeff Bezos at the helm last year, previous warning that Amazon will have to shoulder “several billions of dollars” in additional costs in phase four because of the difficulties. Amazon says its operating profit could be as low as zero.
Wall Street will pay particular attention to Amazon’s first-quarter guidance, as investors try to model how much additional pressure the company expects from inflation and supply shortages.
While its core retail business faces obvious challenges, Amazon is leaning on other divisions, including its profitable cloud computing and fast-growing advertising division. . Analysts expect Amazon Web Services to grow revenue 36% from a year ago.
“Amazon’s growth, similar to most other e-commerce companies, decelerated in FY21 and the market is concerned about continuing into Q1, possibly Q2, with Where is the uncertainty about the normal growth rate,” the Guggenheim analysts wrote in a note. customers at the end of last month. “Q1 guidance will be in focus this week and this looks pretty low, but what’s more important will be any hints on where revenue and margins might go from there.”
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