Amazon Set to Reveal Impressive Q4 Earnings, Analysts Optimistic
With a market cap of $2.3 trillion, Amazon.com, Inc. (AMZN) stands as a powerhouse in e-commerce, cloud computing, and digital services. Renowned for its customer-centered approach and innovative technologies, Amazon operates in various fields such as retail, media, and cloud infrastructure, serving a wide range of customer segments, including consumers, sellers, developers, and advertisers. The company, based in Seattle, Washington, is gearing up to release its fiscal Q4 earnings results on Thursday, Feb. 6.
Analysts Anticipate Strong Profit Growth
Before the earnings announcement, analysts project a profit of $1.53 per share, signifying a rise of 51.5% from last year’s $1.01 per share in the same quarter. Amazon has consistently outperformed Wall Street’s earnings expectations in the previous four quarters, with a remarkable 25.4% margin over consensus EPS estimates in the most recent quarter.
Future Earnings Expectations
For fiscal 2024, estimates indicate that AMZN will report an EPS of $5.38, an 89.4% increase from $2.84 in fiscal 2023.
Stock Performance Comparison
Over the past 52 weeks, AMZN has surged 44.5%, outpacing the S&P 500 Index’s ($SPX) 24.4% rise and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 30.7% increase.
Positive Reactions to Previous Earnings Report
Shares of AMZN soared 6.2% following its Q3 earnings release on Oct. 31, which showcased a strong financial performance exceeding expectations. The company reported an EPS of $1.43, reflecting a 52.1% yearly increase, propelled by an 11% revenue growth to $158.8 billion, surpassing both guidance and estimates. Amazon Web Services (AWS) continued its robust trajectory with a revenue growth of 19.1%, emphasizing its critical role in generative AI and strategic partnerships. Additionally, advertising revenues jumped 19%, bolstering confidence in high-margin sectors. Operating income also spiked by 55.6% to $17.4 billion, with notable improvements across all segments and record results from Prime Big Deal Days.
Analysts Remain Bullish on AMZN Stock
The prevailing sentiment among analysts regarding AMZN stock is optimistic, reflected in a strong “Strong Buy” rating. Out of 49 analysts monitoring the stock, 45 endorse a “Strong Buy,” three advocate for a “Moderate Buy,” and one recommends a “Hold.” As of now, AMZN is trading below the average analyst price target of $249.65.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
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