Amazon.com Inc (AMZN)

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Earnings Preview: Amazon.com Inc. (NASDAQ: AMZN)
By: 24/7 Wall St. | August 2, 2023

• Here is a preview of what to expect from three companies reporting results after U.S. markets close on Thursday.

Amazon

Since falling to a new 52-week low in the first week of 2023, shares of Amazon.com Inc. (NASDAQ: AMZN) have added more than 55%. Over the past 12 months, however, shares remain down by about 3%.

The company’s e-commerce business has been losing money, and Amazon has been living off its AWS cloud computing service. Its experiment with automated stores (Amazon Fresh and Amazon Go) has not turned the tide in the grocery business, and more store staff was fired last week. Investors probably will be looking for more layoffs and wringing more money out of Prime subscribers to get the e-commerce business back on track.

Analysts remain strongly bullish on Amazon stock. Of 54 ratings, 49 have a Buy or Strong Buy rating, and four others have Hold ratings. At a price of around $132.00 a share, the upside potential based on a median price target of $148.00 is 9.1%. At the high price target of $220.00, the upside potential is nearly 67%.

Analysts are looking for second-quarter revenue of $131.34 billion, up 3.1% sequentially and 8.3% higher year over year. Adjusted EPS are expected to be $0.34, up from 10.6% sequentially and up from a loss per share of $0.20 in the year-ago quarter. For the full 2023 fiscal year, Amazon is expected to post EPS of $1.61, compared to last year’s loss of $0.27 per share, on sales of $561.41 billion, up 9.2%.

Amazon stock trades at 80.5 times expected 2023 EPS, 50.0 times estimated 2024 earnings of $2.59 and 34.9 times estimated 2025 earnings of $3.71 per share. The 52-week trading range is $81.43 to $146.57. Amazon does not pay a dividend. Total shareholder return over the past 12 months was negative 4.34%.

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