Advertisement

Amazon stumbles after earnings miss

Jared Blikre, Yahoo Finance, talks the internet retailer's latest numbers.

Video transcript

SEANA SMITH: We need to get over to Jared Blikre. He has some breaking news. Amazon quarterly results are out. Jared, what do you have?

JARED BLIKRE: Yeah, the stock is down, taking a little bit of a hit here. It was a miss on both the top and bottom line. So let's dig into the numbers here. EPS for the third quarter came in at $6.12, but the estimate was for much higher, $8.96. Also net sales coming in at $110.88 billion when the Street was expecting a little bit more, $111.81 billion. Also another headline that might be causing the stock to suffer in after hours trading here. Amazon does expect to incur several billion dollars of additional cost in consumer business in the fourth quarter. And that is to manage labor supply shortages, which we talk about quite a bit on these programs.

Here are some other numbers. Third quarter operating income-- that came in, in short of Wall Street expectations, $4.9 billion. Estimate was for $5.62 billion. Also looking at across their service sales, that came in at $55.9 billion. Now, in North America, their segment sales were $65 and 1/2 billion. International was $29.15 billion. Product sales, $54.8 billion, one more number, operating margin, $4.4 billion. But I think it's those headline numbers that are really giving investors a little bit of pause here. And, well, we got 30 minutes to Apple. So let's talk about Amazon now.

SEANA SMITH: All right, Jared Blikre, thanks so much again. A miss on both the top and bottom lines. The guidance also coming up a bit short for its very important holiday quarter. So a big reason why the stock is in the--