Amazon Reports Q2 Earnings Today, Here’s What Investors Should Expect to See

    Author Caroline HarrisPosted on Categories Retail, ConsumerTags , , , , , , , , , , , , , , , , , , , ,
    Amazon Reports Q2 Earnings

    Amazon (NASDAQ:$AMZN) might be up 40% year-to-date to $1,049.88 but there’s a chance it will go higher after it releases its Q2 earnings report after Thursday’s closing bell.

    The Seattle-based company is expected to report earnings of $1.41 per share, which is down from $1.78 per share in 2016, according to analysts polled by FactSet. Revenue is forecasted to increase to $37.2 billion, up from $30.4 billion in the 2016 period. Based on the last earnings call, Amazon expects revenue to come in between the range of $35.25 billion and $37.75 billion for the second quarter.

    During the earnings call, it’s almost a given that management will get a number of questions about the Whole Foods acquisition. For the most part, analysts and investors have had a positive reaction to the $13.7 billion deal, as they believe it’s a win-win situation.

    Last week, UBS analyst Eric Sheridan said that investors will probably focus more on revenue-growing opportunities for Amazon rather than the rise and fall of profit from quarter to quarter. Additionally, as always, analysts will be searching for Amazon Web Services’ (AWS) revenue, which brought in 10.3% of the company’s overall revenue in Q1. For the first quarter of 2017, AWS revenue increased by 42.6% quarter-over-quarter, but that growth has slowly been deteriorating.

    Let’s Summarize!

    What Should Investors Expect to See on the Q2 Earnings Report?

    1. Earnings

    According to analysts surveyed by FactSet, the expected earnings per share is $1.41, which is down from $1.78 in 2016. Additionally, Estimize, which is a software platform, expects EPS of $1.49.

    1. Revenue

    Based on the FactSet consensus, revenue is expected to be $37.2 billion, which is up from $30.4 billion in 2016. In addition, Estimize forecasts revenue of $37.4 billion.

    1. AMZN Stock Reaction

    For the year so far, Amazon shares are up 40.2%, and up 15.7% for the last three months. With a sample size of 43 analysts, the average price target is $1,124.86, up 18% from an average target of $956.88 (as of March 31), and 8.3% above current levels.

    Featured Image: depositphotos/ymgerman

    Author Caroline Harris
    About the author: Caroline Harris is a third-year student at Capilano University in North Vancouver, Canada. Having already completed an Associates Degree in Psychology, Caroline is now finishing her Bachelor's degree in Communications. In preparation for working in the advertisement sector, Caroline is writing financial content and analysis. On a daily basis, Caroline works on articles regarding the following topics: finance, cryptocurrency, technology, and politics.