Amazon Analyst Round-up Following Q3 Earnings Results

On October 23, Amazon Inc. AMZN announced third quarter 2014 financial results. Amazon reported EPS of $(0.95) per share missing estimates by $0.22 per share or 30 percent.
Revenue also missed Street estimates by $260 million; coming in at $20.58 billion.

Following the results, analysts at multiple firms adjusted the investment recommendation on shares of Amazon:

Benchmark: maintained Buy rating; lowered price target to $350 from $460.
Credit Suisse: maintained Outperform rating; lowered price target to $395 from $422.
Deutsche Bank: maintained Buy rating; lowered price target to $350 from $375.
SunTrust: maintained Buy rating; lowered price target to $360 from $380.
Topeka: maintained Buy rating; lowered price target to $350 from $395.
Wedbush: maintained Neutral rating; $330 price target.

Subsequent to the earnings announcement, analysts across the board reduced estimates for Amazon Inc. given the large earnings miss and lowered guidance for the holiday season.

Analysts believe that Amazon remains a category leader and the current trading level is attractive as there is historical support for the current price .

Some analysts feel that gross profit dollars better reflects the economic picture of Amazon which grew 26 percent year over year.

On the other hand, media growth is declining for Amazon, which is a metric that must be monitored moving forward.

Lastly, analysts find that first quarter 2015 guidance along with fourth quarter results will be critical in assessing the stock next year.

Following the earnings miss, shares of Amazon recently traded at $289.15 down 7.7 percent.

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Posted In: EarningsNewsPrice TargetAnalyst RatingsCredit SuisseDeutsche BankSunTrust Robinson HumphreyThe Benchmark CompanyTopekaWedbush
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