What to Expect When Amazon Reports After the Close

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Amazon.com Inc. (NASDAQ: AMZN) is scheduled to release its most recent quarterly results after the markets close on Thursday. This is easily one of the most anticipated reports coming out this quarter. After it made some shocking moves over the summer, including the acquisition of Whole Foods, we can finally see if it paid off, at least in the short term.

Analysts aren’t expecting much for this e-commerce giant on the bottom line, as per usual, but they are incredibly bullish. Although Amazon hasn’t put together a string of consistent earnings growth since its inception, analysts seem to be more focused on what the company has in store next.

The consensus estimates from Thomson Reuters are $0.03 in earnings per share (EPS) and $42.14 billion in revenue. The third-quarter of last year had $0.52 in EPS on $32.71 billion in revenue.

The company announced this week that it would be expanding its Prime membership services to businesses. The main selling point on this is that the Business Prime service offers unlimited free two-day shipping on eligible items for all users on an Amazon Business account.

Amazon Business customers can sign up for an annual Business Prime Shipping membership based on the number of users on their business account: $499 for up to 10 users, $1,299 for up to 100 users and $10,099 for over 100 users.

Also this week the company announced Amazon Key, a new service exclusively for Prime members that radically improves the convenience of receiving deliveries. Amazon Key will enable in-home delivery and secure home access for guests and service appointments. It will be available on November 8 in 37 cities and surrounding areas across the United States, with more locations rolling out over time.

Amazon’s plans for ruthless expansion are clear, but this earnings report will give investors and analysts a better idea of what to expect from Amazon going forward, especially with the holiday season just around the corner.

Here’s what some analysts had to say about Amazon ahead of the report:

  • Goldman Sachs has a Buy rating.
  • Cantor Fitzgerald has a Buy rating with a $1,150 price target.
  • JPMorgan has a Buy rating.
  • Deutsche Bank has a Buy rating with a $1,192 price target.
  • Stifel has a Buy rating and a $1,100 price target.
  • Wedbush has a Buy rating with a $1,250 price target.
  • Loop Capital has a Buy rating with a $1,200 target price.
  • Mizuho has a Buy rating and a $1,250 price target.
  • Canaccord Genuity has a Buy rating with a $1,100 price target.
  • Credit Suisse has an Outperform rating with a $1,350 price target.

Shares of Amazon were last seen trading at $971.99, with a consensus analyst price target of $1,163.93 and a 52-week range of $710.10 to $1,083.31.