Technology

What to Expect From Amazon Earnings

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When Amazon.com Inc. (NASDAQ: AMZN) reports second-quarter earnings after markets close Thursday, analysts are looking for a per share loss of $0.14 and revenues of $22.39 billion. In the same quarter last year, the company reported a loss of $0.27 per share and $19.34 billion in revenues.

Following its Prime Day promotion, one thing analysts will be paying attention to is whether the company finally breaks out subscriber numbers for its Amazon Prime service. By most outside accounts, Prime Day was a dud, though Amazon said that it signed up more new members than on any other day in the company’s 20-year history. It did not say how many of those new customers took advantage of the free 30-day trial. All told, customers ordered 34.4 million items on Prime Day, including “hundreds of thousands” of Amazon devices. But was that enough to move the needle? Lacking detailed numbers on subscriber numbers makes us wonder.

On Wednesday, JMP Securities raised its rating on Amazon stock at Outperform and set a price target of $575. Goldman Sachs on Tuesday reiterated its Buy rating and raised its price target from $510 to $570. Bank of America Merrill Lynch also reiterated its Buy rating on Monday and raised the price target to $535. The highest price target we have seen comes from Sanford C. Bernstein at $600. Bernstein rates the company to Outperform.

In the first quarter, Amazon for the first time reported revenues and profits separately for its Web services business. In that quarter, Web services revenues totaled $1.57 billion and operating income totaled $265 million. With an operating profit of around 17%, Amazon should wish for the same margin in its retail business.

Shares traded down about 1.7% in the noon hour Thursday, at $479.92 in a 52-week range of $284.00 to $493.20. The consensus price target on the stock is $498.42.

ALSO READ: Amazon Is Among the Most Valuable Brands

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