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What Does Wall Street See for Amazon.com's Q1?

By Seth Jayson - Updated Apr 10, 2017 at 1:46PM

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Checking expectations

Amazon.com (Nasdaq: AMZN) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Amazon.com's revenues will increase 22.5% and EPS will decrease -64.3%.

The average estimate for revenue is $16.16 billion. On the bottom line, the average EPS estimate is $0.10.

Revenue details
Last quarter, Amazon.com logged revenue of $21.27 billion. GAAP reported sales were 22% higher than the prior-year quarter's $17.43 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.21. GAAP EPS of $0.21 for Q4 were 45% lower than the prior-year quarter's $0.38 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 24.1%, 340 basis points better than the prior-year quarter. Operating margin was 1.9%, 40 basis points better than the prior-year quarter. Net margin was 0.5%, 50 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $75.60 billion. The average EPS estimate is $1.66.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 5,395 members out of 6,804 rating the stock outperform, and 1,409 members rating it underperform. Among 1,668 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,409 give Amazon.com a green thumbs-up, and 259 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Amazon.com is outperform, with an average price target of $274.65.

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