Amazon’s Q1 2025 Earnings Preview and Analyst Insights
Amazon.com, Inc. (AMZN), based in Seattle, Washington, ranks as the largest online retailer and marketplace globally. The company operates in the retail sector selling consumer goods, along with advertising and subscription services via both online and physical channels. Holding a market capitalization of $1.8 trillion, Amazon’s product range includes books, music, electronics, and various other items. Additionally, the company provides personalized shopping experiences, web-based credit card payment options, and direct shipping through its cloud services. The e-commerce leader is set to announce its fiscal first-quarter earnings for 2025 on Thursday, May 1, after market closure.
Analysts Predict Strong Fiscal Results
Leading up to the announcement, analysts forecast that AMZN will report a profit of $1.37 per share on a diluted basis, reflecting a 21.2% increase from $1.13 per share for the same quarter last year. The company has consistently outperformed Wall Street’s EPS estimates in its last four quarterly reports.
For the entire fiscal year, analysts predict that AMZN will report an EPS of $6.33, which marks a 14.5% rise from $5.53 in fiscal 2024. Furthermore, EPS is anticipated to increase by 14.7% year over year, reaching $7.26 in fiscal 2026.
Recent Stock Performance and Market Challenges
AMZN stock has underperformed relative to the S&P 500, which gained 5.4% over the past year, as AMZN shares are down 4.8%. It also lagged behind the Consumer Discretionary Select Sector SPDR Fund (XLY), which saw a 7.6% rise during the same timeframe.
This decline can be attributed to several factors including increased regulatory scrutiny, intense competition, and macroeconomic pressures, particularly tariffs on imports from China. The tariffs could greatly affect Amazon’s third-party marketplace, as sellers based in China contribute over 50% of sales. Additionally, Amazon Web Services (AWS) might see rising operational costs due to these tariffs, which could hinder IT spending.
On February 6, AMZN shares saw a more than 1% increase following the release of its Q4 results. The company’s revenue hit $187.8 billion, marking a 10.5% year-over-year increase, while its EPS surged 86% year over year to $1.86.
Analysts Maintain Bullish Outlook
The consensus among analysts on AMZN stock remains bullish, with an overall rating of “Strong Buy.” Out of 53 analysts covering the stock, 48 recommend a “Strong Buy,” four suggest a “Moderate Buy,” and one indicates a “Hold.” The average analyst price target sits at $254.15, suggesting a notable potential upside of 47.2% from current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.
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