Leading ecommerce company Amazon.com Inc (NASDAQ: AMZN) is set to report first-quarter financial results after market close Tuesday.
Here's an overview of analyst earnings estimates, their insights, and key factors to watch.
Earnings Estimates: Analysts expect Amazon to report first-quarter revenue of $142.47 billion, according to an estimate from Benzinga Pro.
The revenue would be an improvement from the $127.36 billion reported in last year's first quarter. Amazon has beaten revenue estimates from analysts in five straight quarters.
Analysts expect Amazon will report first-quarter earnings per share of 83 cents, compared to 35 cents per share reported in last year's first quarter. The company has beaten analyst estimates for earnings per share in five straight quarters.
Amazon's first quarter guidance for revenue was a range of $138 billion to $143.5 billion when it reported fourth quarter results.
What Analysts Are Saying: Double-digit sales and profit growth in the first quarter by Amazon could show the strength of online spending and faster fulfillment, said Telsey analyst Joseph Feldman.
Feldman, who has an Outperform rating and $200 price target, said the first quarter could also show a stabilization and growth for the company's AWS segment.
Another item to watch from the analyst is higher margin categories like advertising, media and services and how they could help with overall growth for the company.
The analyst also highlighted a redesigned distribution network and potential cost savings as a key for Amazon in the first quarter.
Here are other recent stock ratings for Amazon and price targets from analysts.
- UBS: Buy rating, raised price target from $198 to $215
- JMP: Market Outperform rating, $225 price target
- Benchmark: Buy rating, $200 price target
- Citi: Buy rating, raised price target from $215 to $235
- Wedbush: Outperform rating, raised price target from $220 to $225
- BMO: Outperform rating, raised price target from $205 to $215
Another key item to watch is sports content. The company continues to add sports media rights, which could boost overall Amazon Prime membership accounts. Amazon has the rights to Thursday Night Football games and also has signed with other sports leagues.
Amazon is circling NBA broadcast rights as the league works to negotiate with new media partners. Amazon's media deal with the WNBA will see the company have the rights to four Indiana Fever games during the 2024 WNBA season, featuring the league's highest anticipated rookie Caitlin Clark.
The debut of the "Fallout" television series hit Prime Video on April 10. While this will factor into the second quarter, commentary on the success of the show and other series adaptations in the works could lead to more excitement over the Prime Video segment by analysts and investors.
AMZN Price Action: Amazon shares are up 1% to $180.75 on Monday versus a 52-week price range of $101.15 to $189.77.