Amazon reports strong fourth-quarter results despite supply chain snags
Posted February 3, 2022 5:00 pm.
Last Updated February 3, 2022 5:16 pm.
NEW YORK — Amazon is reporting strong fourth-quarter sales and profits even as the online behemoth continues to contend with surging costs tied to a snarled supply chain and labour shortages.
The company, based in Seattle, also raised its annual Prime membership fee to US$139 per year from US$119. This is the first time Amazon has raised the price of Prime membership since 2018.
Amazon Canada representative Andrew Gouveia said the price increase announced for Prime only applies to U.S. customers.
The company reported a profit of US$14.32 billion, or $27.75 per share, for the three-month period ended Dec. 31. That compared with a profit of US$7.22 billion, or US$14.09 per share during the year-ago period. Revenue rose nine per cent to US$137.41 billion, the company’s fifth consecutive quarter of revenue topping US$100 billion.
Analysts surveyed by FactSet, however, on average expected US$137.68 billion in quarterly revenue and per-share earnings of US$3.61 per share.
The company said that sales are expected to be between US$112 billion and US$117 billion for the current fiscal quarter. Analysts were expecting US$120.93 billion, according to FactSet estimates.
Amazon was one of the few retailers that has prospered during the COVID-19 outbreak. As physical stores selling non-essential goods temporarily or permanently closed, homebound people turned to Amazon for everything from groceries to cleaning supplies.
But growth has slowed as newly vaccinated Americans feel comfortable going out. And the company, like many others, are dealing with global supply chain issues and shortages of workers.
Shares rose more than 13 per cent in after-hour trading when Amazon released its results.
Anne D’innocenzio, The Associated Press
