Earnings Preview: Analysts Expect Amazon.com Revenue, Earnings to Dip from Previous Quarter

Amazon.com AMZN releases its next round of earnings this Tuesday, July 26, 2011. Here is Benzinga's everything-that-matters guide to Amazon's second quarter earnings report. 

Earnings and Revenue:

Analysts are looking ahead to a positive EPS reading of 37 cents per share and revenues of $9.37 billion. We'll have to wait for Tuesday to see if Amazon.com reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 Q4 Q3 Q2
EPS Estimate $0.60 $0.88 $0.48 $0.56
EPS Actual $0.44 $0.91 $0.51 $0.45

Stock Performance:

Shares of Amazon.com were trading at $215.55 as of July 20, 2011. Since January 1st, shares of Amazon.com have given investors a return of 19.8%. For a full 12 months, the return has risen by 38.7%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
  • Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Amazon.com is a Moderate Buy. The strength of this rating has crept upwards over the past three months.

Competitors:

Wondering how some of the other consumer discretionary companies are doing? Here are a few of Amazon.com's peers in that sector.
  • Best Buy BBY: Hold with a $0.35 recent quarter EPS
  • Barnes & Noble BKS: Hold with a -$1.04 recent quarter EPS
  • Costco Wholesale COST: Hold with a $0.80 recent quarter EPS
  • eBay EBAY: Hold with a $0.40 recent quarter EPS

Amazon.com is in the internet commerce industry, which has experienced price/earnings growth of 1.4%.

Finally, a description of the company's main areas of operation: Amazon.com sells millions of products across dozens of product categories on its web site. It also manufactures and sells the Kindle, an e-reader.

Take Action:

That's your advanced look at Amazon.com's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

  • To see up-to-date news on Amazon.com, click here
  • To see other trading ideas, click here
  • To see other company earnings recaps, click here
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