Amazon.com Inc (NASDAQ:AMZN) is expected to post a year-over-year jump in profit and sales when it hands down its second-quarter earnings after the market close on Thursday, August 3.
Analysts appear increasingly confident in the stock, with the consensus earnings per share estimate upwardly revised by 0.59% over the 30 days to June 20, according to Zack Equity Research.
Analysts, on average, expect Amazon to report earnings per share (EPS) of $0.34 compared to a loss per diluted share of $0.20 in the second quarter of 2022.
Revenue is pegged at $131.54, up about 8% from $121.23 in the year-ago quarter, according to Zacks.
When handing down its first-quarter results in late April, the eCommerce giant guided for 2Q sales of between $127 billion and $133 billion, representing growth of between 5% and 10% over the year-ago quarter.
Buoying investor expectations ahead of the earnings report is Amazon’s record-breaking Prime Day, with the company reporting its highest-ever single day of sales on July 11.
The performance of the company’s cloud business, Amazon Web Services (AWS), will once again draw focus after revenue growth from this segment fell to a new all-time low of 16% during 1Q 2023 at $21.4 billion.
AWS revenue is expected to be between $22.3 billion and $23 billion for 2Q, Seeking Alpha forecast, up from $19.7 billion in the second quarter of 2022.
This forecast range represents year-over-year growth between 13.2% and 16.7%, possibly indicating a return to increased growth for AWS if the segment's sales come in at the high end of this range.
Analysts at UBS have a more conservative forecast of 8% growth for Amazon's cloud business, "with the positive view that AWS is better positioned for AI workloads than the Street is embedding in Amazon shares," they wrote in a note to clients.
Amazon shares traded at US$128.46 on Wednesday afternoon ahead of its report. The stock has gained 49.7% in the year to date.
- Updated with share price movement -
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