Amazon.com Inc. reported fourth-quarter diluted earnings of 3 cents per share late Thursday, falling short of analysts’ consensus of 17 cents per share and a long way from the $1.39-per-share level of the fourth quarter of 2021.
Sales increased by 9% to $149.2 billion, exceeding analysts’ expectations. Amazon said that excluding a $5 billion currency headwind in the quarter, year-on-year sales increased 12%.
Operating income fell to $2.7 billion in the 2021 quarter from $3.5 billion. Amazon (NASDAQ: AMZN) recorded a $2.7 billion charge in the third quarter for self-insurance liabilities, property and equipment impairments, operating lease impairments, and estimated severance costs.
Amazon’s net income fell to $300 million in the quarter, compared to $14.3 billion in the fourth quarter of 2021. Amazon’s investment in electric vehicle manufacturer Rivian Automotive Inc. resulted in a $2.3 billion pretax loss in the 2022 quarter (NASDAQ: RIVN). In comparison, the 2021 quarter saw a pretax gain of $11.8 billion.
Rivian shares will go public in late 2021 at a price of around $180 per share. They have dropped precipitously since then. The stock closed Thursday at $20.88.
Amazon forecasted first-quarter 2023 sales of between $121 billion and $126 billion, representing a 4% to 8% increase.
According to Amazon, operating income will range between zero and $4 billion. This is up from $3.7 billion in the first quarter of 2022.
Shipping costs reached $24.7 billion during the quarter, which is typically Amazon’s busiest due to the holiday season. This was 4% higher than the fourth quarter of 2021.
Amazon shares fell 4% in after-hours trading after rising 7.3% during regular Thursday trading.
