Credit Suisse analysts have taken another look at their model for Amazon.com Inc. and anticipate that the annual Prime Day shopping event will take place in the third quarter rather than the second quarter.
Credit Suisse is now also taking the close of the deal to acquire the MGM movie and television studio into account, as well as a 5% fuel and inflation surcharge imposed on U.S. third-party sellers.“CEO Andy Jassy’s shareholder letter helped to crystallize the rationale for stepped up investments as he disclosed that Amazon has seen three years of growth in just over a year,” Credit Suisse analysts led by Stephen Ju wrote.
Stifel analysts expect online sales growth to decelerate in the first quarter with strong results for the AWS and advertising arms. Estimize, which crowdsources estimates from sell-side and buy-side analysts, hedge-fund managers, executives, academics and others, forecasts EPS of $9.63.Revenue: The FactSet consensus is for revenue of $116.450 billion, up from $108.518 billion last year.Amazon has missed the FactSet sales consensus the last three quarters.
“It has always been challenging to forecast margin expansion at Amazon simply because they would find some or the other avenue to invest, although investment intensity has waned every couple of years or so before picking up again,” analysts led by Lloyd Walmsley wrote. “In Q1, we expect that these products likely saw around a 5% increase in prices, assuming the new 5% surcharge is being implemented in order to cancel out the negative impact of inflation. Additionally, we believe inflation did not result in a material impact to revenue in Q1 due to robust consumer spending.”
It's always in the 3rd qtr.
Our company is doing the same, can’t be stuck in the middle
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