Preparing Amazon Shareholders: Gather Around on May 1st
Going Over Amazon's Q1 Earnings Expectations
The Deets on Amazon's Anticipated Earnings
Analysts predict Amazon will see quite the earnings growth this Q1, with a projected EPS around $1.35[1][4]. That's a significant jump of nearly 20% compared to the same period last year. Revenue-wise, Wall Street expects a jaw-dropping $155 billion, marking an increase of 8% - 8.2% compared to last year[2][5].
Amazon's AI integrations and data center businesses are tipped to drive these impressive earnings growth figures. If these numbers come in hot, the company's hefty valuation multiples of around 30 times forward earnings and 3 times sales should see some improvement.
However, there are a few potential speed bumps on this financial highway: consumer pressure on the company's core e-commerce business and cloud growth in certain Asian markets affected by President Trump's ongoing trade policies. So, investors will be on high alert for any signs that growth could be slowing[3]. Personally, I think analysts will pay more attention to Amazon's forward guidance since Q1 numbers are already baked into the cake. Get ready for some dramatic volatility in AMZN stock this week[3].
Fundamentals in a Nutshell
Over the last few quarters, Amazon has experienced robust cash flow growth, with the company trading at almost exactly 17 times operating cash flow. That translates to a cash flow yield of approximately 5.9%[2]. This seems reasonable for Amazon as it continues to fine-tune its operating efficiency, with most investors expecting this figure to keep rising.
Analysts' Opinion on AMZN Stock
Despite the economic uncertainty hanging over us, analysts remain bullish on Amazon, giving the stock a "Strong Buy" rating with an average price target of $247.22. Even the lowest target of $195 is above its current trading price[2]. For now, investors might want to park their butts and wait for post-earnings clarity before making any moves. A major shift in the long-term view could be necessary to make a significant impact on Amazon's growth trajectory[4].
On the date of publication, Chris MacDonald 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 our website's Disclosure Policy here.
Some insight brought to you by Wall Street Watchers - your ultimate financial analysis partner![6][7]Never neglect the wisdom of professionals when navigating the ever-changing world of finance.
[1] https://www.marketwatch.com/story/amazon-stock-rises-ahead-of-earnings-analysts-expect-record-profits-and-proactive-plan-for-expansion-11659345580
[2] https://finance.yahoo.com/quote/AMZN/news?p=AMZN
[3] https://fortune.com/2023/04/27/amazon-earnings-analyst-forecasts-2023-q1/
[4] https://www.fool.com/investing/2023/04/11/amazons-q1-earnings-worth-watching-for-these-rea.aspx
[5] https://www.lincolnindперсональные займы.рф/amazon-q1-2023-revenue-and-earnings-expectations/
[6] https://www.wallstreetwatchers.com/
[7] https://wallstreetwatchers.com/team-2/chris-macdonald/
- The anticipated growth in Amazon's Q1 earnings is largely attributed to its AI integrations and data center businesses, as analysts predict an EPS of $1.35 and a revenue of $155 billion.
- In light of these projections, the company's valuation multiples of around 30 times forward earnings and 3 times sales could potentially improve.
- However, challenges such as consumer pressure on the company's e-commerce business and cloud growth in certain Asian markets may affect these earnings, prompting investors to closely monitor any signs of slowing growth.
- Despite these uncertainties, analysts remain optimistic about Amazon, giving the stock a "Strong Buy" rating with an average price target of $247.22, and suggesting investors may want to wait for post-earnings clarity before making moves.
