Amazon reports strong 4Q results despite supply chain snags

NEW YORK (AP) — 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 labor shortages.

The company, based in Seattle, also raised its annual prime membership fee to $139 per year from $119. This is the first time Amazon has raised the price of Prime membership since 2018.

The company reported a profit of $14.32 billion, or $27.75 per share, for the three-month period ended Dec. 31, 2021. That compared with a profit of $7.22 billion, or $14.09 per share, a share, during the year-ago period. Revenue rose 9% to $137.41 billion, the company’s fifth consecutive quarter of revenue topping $100 billion.

Analysts surveyed by FactSet, however, on average expected $137.68 billion in quarterly revenue and per-share earnings of $3.61 per share.

The company said that sales are expected to be between $112 billion and $117 billion for the current fiscal quarter. Analysts were expecting $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% in after hour trading when Amazon released its results.