Amazon CEO Andy Jassy speaks at a WSJD Live conference in Laguna Beach, California in 2016.
Mike Blake | Reuters
Amazon shares dropped more than 4.3% in extended trading on Thursday after the company reported weaker-than-expected results for the third quarter and delivered disappointing guidance for the critical holiday period.
- Earnings: $6.12 vs $8.92 per share expected, according to analysts surveyed by Refinitiv
- Revenue: $110.81 billion vs $111.6 billion expected, according to analysts surveyed by Refinitiv
For the fourth quarter, Amazon forecast sales between $130 billion and $140 billion, representing growth between 4% and 12%. Analysts surveyed by FactSet were expecting revenue to rise 13.2% year-over-year to $142.1 billion.
Amazon CEO Andy Jassy said the company expects to take on “several billion dollars” of extra costs in its consumer business in the fourth quarter as a result of labor shortages, higher employee costs, global supply-chain constraints and increased freight and shipping costs. Amazon is navigating these challenges as it enters the peak holiday season, he said.
“It’ll be expensive for us in the short term, but it’s the right prioritization for our customers and partners,” Jassy said in a statement.
This story is developing. Check back for updates.