Amazon Q3 earnings fall short, blames labor shortage and higher wages

Amazon missed analyst expectations and doesn't expect things to get much better.

What you need to know

• Amazon announced its Q3 financial earnings ending in September.
• The company reported just over $110 billion in revenue, missing analysts' expectations by nearly $1 billion.
• Amazon expects a weak Q4 due to labor shortages and higher wages.

While Amazon continues to rake in billions each quarter, the company also continues to miss analyst expectations, as shown by Thursday's Q3 financial earnings report.

Amazon reported more than $110 billion in revenue, up 15% from the same period last year. However, that falls just short of analyst estimates of nearly $112 billion. CFO Brian Osofsky says that while Amazon's operations are normally well-staffed and optimized, "labor shortages and supply chain disruptions upset this balance and resulted in additional costs to ensure that we continue to maintain our service levels to customers."

Here we go @amazon. Miss on top and bottom, but still delivered a very strong quarter in terms of revenue and earnings created. Interested in hearing remarks from @Ajassy. $AMZN #Earnings$AMZN Q3
- $6.12 EPS vs. $8.92 estimate
- $110.8 billion net sales vs. $111.6B estimate.

— Daniel Newman (@danielnewmanUV) October 28, 2021

Additionally, Amazon CEO Andy Jassy expects this to continue into Q4 with "several billion dollars of additional costs" incurred from labor shortages, increased wage costs, and higher costs of shipping and freight. However, he notes that Amazon is doing what it can to minimize the impact on customers. "It'll be expensive for us in the short term, but it's the right prioritization for our customers and partners," he says in a press statement.

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