Will Amazon Beat Analysts’ Estimates in the Third Quarter Too?



Amazon shares have risen in the last three months

Amazon (AMZN), the online retailer and e-commerce giant, is scheduled to release its third quarter earnings results on Thursday, October 22. Amazon shares have risen about 18% in the last three months.

The company’s guidance for revenue in the third quarter of 2015 is in the range of $23.3–$25.5 billion. This represents a year-over-year (or YoY) growth of 13%–24%.

The consensus analyst estimate is revenue of $24.9 billion for 3Q15, which translates to a YoY increase of 21%.

According to Amazon’s management guidance, Amazon expects an operating income between $70 million and -$480 million in 3Q15. Analysts estimate a net loss of $0.13 per share in 3Q15. Amazon reported a loss of $0.95 per share in 3Q14.

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Will Amazon surprise again in 3Q15?

Amazon surprised investors and analysts with its strong 2Q15 earnings. The results exceeded analysts’ expectations. Amazon reported diluted earnings per share of $0.19 on net sales of $23.2 billion, a 20% YoY increase in revenue.

The earnings season in the Internet segment of the technology sector kick-started with eBay (EBAY) releasing its 3Q15 results on October 21. Alphabet (GOOGL) and Amazon will release their earnings on Thursday, October 22. Twitter (TWTR) is scheduled to announce its 3Q15 earnings later this month on October 27.

You can get exposure to Amazon by investing in the Consumer Discretionary Select Sector SPDR ETF (XLY), which has 6.1% exposure to the company.


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