TOPLINE Tech giants Apple and Amazon both came up short of expectations in quarterly earnings reports released after market close Thursday and warned of supply chain issues cutting into their bottom lines, causing Apple to fall 3.4% and Amazon to dip 3.6% in after-hours trading.
KEY FACTS
Apple reported revenue of $83.4 billion for the quarter ending September 25, a 29%year-over-year jump, though it was slightly below analyst expectations, while its earnings per share of $1.24 per share matched forecasts.
Apple CEO Tim Cook said in an interview with CNBC that “supply constraints,” including chip shortages, cost the company $6 billion in revenue.
Amazon reported $110.81 billion in revenue for the quarter, also below forecasts, while its $6.12 earnings per share were well short of the $8.92 expected by analysts.
Amazon CEO Andy Jassy also said that supply chain issues will cost the company “several billion dollars” in the current quarter, coinciding with the critical shopping season.
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CRUCIAL QUOTE
Jassy detailed problems Amazon expects to face in the fourth quarter in the earnings release: “We expect to incur several billion dollars of additional costs in our Consumer business as we manage through labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs.”
BIG NUMBER
$38.87 billion. That’s how much in iPhone sales Apple brought in last quarter.
TANGENT
Amazon and Apple were not the only members of the FAANG stock group (Facebook, Amazon, Apple, Netflix and Google) making headlines Thursday—Facebook changed its name to Meta Thursday to reflect its foray into augmented reality and virtual reality.
FURTHER READING
Apple sales miss expectations, Tim Cook says supply issues cost company $6 billion (CNBC)
Amazon badly misses on earnings and revenue, gives disappointing fourth-quarter guidance (CNBC)Follow me on Twitter. Send me a secure tip.
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