Amazon returns to profit and sales rise 15%, but does not meet forecasts

Net profit fell by 9.4% in the third quarter compared to the same period a year ago, but has left behind the losses recorded in the first half. Even so, their numbers have been slightly below the expectations of the market.

After two quarters in the red, Amazon accounts returned to black in the third quarter of the year, when it earned 2,900 million dollars (2,908 million euros). For its part, sales improved by 15%, to 127,100 million dollars (127,487 million euros). Even so, they were slightly below market expectations.

Earnings were down 9.4% from the same period a year earlier and net earnings per share stood at $0.28, down from $0.31 in September 2021. The good news is that you’ve stopped behind the red numbers that it reaped in the first half of the year as a result of the fall in the Rivian stock market, a manufacturer of electric vehicles in which Amazon has a significant stake and that came to generate a hole in its accounts of more than 14,000 million euros. dollars.

It was the first time the e-commerce giant had announced losses in the last seven years. Since January, the company has left around 35% of its capitalization on the stock market and has returned to around $110 per share, a level not seen since before the pandemic.

The company’s CEO, Andy Jassy, ​​launched an ambitious cost rationalization plan a few months ago. Among other measures, for example, it sublet a large part of its warehouses, taking advantage of a surplus in its capacity. It has also postponed the construction of new facilities and cut staff in some divisions and frozen hiring in others.

Amazon was one of the star values ​​during the confinements, given the unprecedented growth registered by electronic commerce during the months of restrictions imposed by the health crisis. On the contrary, the return to normality and the reopening of physical stores has had a negative impact on their accounts, cutting their growth and forecasts for the coming months.

“We are encouraged by the steady progress we are making in reducing costs and have put in place a set of initiatives that we believe will lead to a stronger cost structure for the business going forward,” Jassy explained yesterday. it’s a statement. “Clearly, there are many things happening in the macroeconomic environment, so we will balance our investments to be more agile without compromising our main long-term strategic bets,” said the company’s CEO.

As for the forecasts for the last quarter of the year, Amazon added yesterday that it is confident that sales will be between 140,000 and 148,000 million dollars, with growth between 2% and 8% compared to the same period in 2021.

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