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Amazon shares rise despite missing revenue expectations for Q4

On Thursday, Inc. (AMZN) announced better-than-expected earnings for the fourth quarter. However, the e-commerce giant couldn’t meet the sales expectations for Q4.

Amazon earnings

Nevertheless, Amazon stock jumped over 14 percent in the after-hours trading session on February 3 despite mixed financial performance.

Financial Highlights

Amazon reported earnings of $14.3 billion, or $27.75 per share, for the three months ended December 31, 2021. That’s nearly doubled from $7.2 billion, or $14.09 per share, in the fourth quarter of 2020. Excluding non-recurring items, adjusted earnings were $5.80 per share, significantly higher than analysts’ average estimate of $3.57 per share.

Total sales for the quarter rose 9.4 percent versus last year to $137.4 billion. It was Amazon’s first single-digit sales growth in nearly four years. Moreover, it also came in below the consensus forecast of $137.6 billion.

On the bright side, revenue from the company’s cloud-computing unit, Amazon Web Services (AWS), climbed 40 percent on a year-over-year basis to $17.8 billion. AWS continues to be the largest revenue driver for Amazon. Analysts were expecting the AWS segment to generate revenue of $17.3 billion.

In addition, the company, for the first time, revealed the performance of its rapidly growing advertising business. Its ad revenue for the quarter climbed 32 percent on a year-over-year basis to $9.72 billion.

Among other key announcements, Amazon said that it plans to increase its Prime subscription prices. The company is raising its monthly membership fee from $12.99 to $14.99 and annual membership from $119 to $139.

Amazon also released its sales outlook for the first quarter. The e-commerce giant expects to generate revenue in the range of $112 billion to $117 billion for the current quarter. However, the guidance is below analysts’ average estimate of $120 billion.

Fundamental data

See the latest fundamental data of Amazon below:



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