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?
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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.
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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.
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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.
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