Helane Becker, senior research analyst at Cowen, said a number of headwinds have made her more cautious heading into the fiscal first-quarter earnings release.
"We lowered our forecasts basically to account for the fact that they're obviously having some issues with respect to getting back on track in the international market," Becker said Tuesday on CNBC's"There's also some discussion relative to the global economy. So I think both those things are kind of weighing on numbers."
Cowen lowered first-quarter earnings estimates on Friday to $3.01 a share, down from a previous estimate of $3.08 a share. Analysts anticipate earnings of $3.15 a share, according to FactSet.earlier this year, a move that Becker said could reduce its annual revenue by around $1 billion. However, Becker said it should recoup that fairly quickly.
"We expect that will happen in short order. We think the Amazon business was low margin -- like a low single-digit margin business. And most of their business is kind of higher margin in the double-digit range. So you replaced low margin with high-margin business, they should recoup that revenue fairly rapidly. But we're expecting this to kind of be a transition year," Becker said.
She adds that the stock could sell off the day after earnings as it has done in the past, though it should quickly rebound. Cowen has an overweight rating and $206 price target on the stock, implying nearly 20% upside.
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