Amazon shares were trading 14% higher after-hours following the company’s Q4 results, with EPS of $27.75 coming in better than the consensus estimate of $3.58. Revenues grew 9% year-over-year to $137.4 billion, almost in line with the consensus estimate of $137.56 billion.
According to Andy Jassy, Amazon CEO, the company saw higher costs driven by labor supply shortages and inflationary pressures over the holidays, with these issues persisting into Q1 due to Omicron. Jassy noted, however, that they feel optimistic and excited about the business as the company emerges from the pandemic, despite these short-term challenges.
The company expects Q1/22 revenue in the range of $112-117 billion (3-8% year-over-year growth), lower than the consensus estimate of $120.1 billion.
The company announced that it will raise its Prime membership price in the U.S. to $14.99 from $12.99 for a monthly membership, and to $139 from $119 for an annual membership. This represents the first time since the company increased its Prime membership price in 2018. The change will go into effect on February 18 for new Prime members. For current Prime members, the price change will go into effect after March 25 on the date of their next renewal.
