by SignalFactory · October 29, 2020 | 10:55:18 UTC
The biggest winner Thursday will be Amazon, the Seattle-based e-tailer, predicts Dan Ives, an analyst with Wedbush Securities, who thinks Amazon could announce revenues approaching a record $100 billion. He’s going with $92 billion for his estimate, up from the $88.9 billion reaped in the second quarter.
“Amazon is the poster child of beneficiary from the COVID environment,” he says. “They became the core artery for consumers to get their everyday needs. There’s no way to sugarcoat it. The strong are getting stronger.”
That said, Amazon’s big quarter will not be the summer quarter being announced Thursday, which this year will be minus the usual Prime Day sales stunt. Instead, investors are looking to the coming fall quarter, which will include holiday sales and the movement of Prime Day to October.
“Expect a more muted performance in Q3 sandwiched in between Amazon’s sensational Q2 and what’s likely to be a historically great holiday quarter with the added bump of Prime Day in October,” says eMarketer analyst Andrew Lipsman.
Amazon’s worldwide e-commerce sales will top off at $476 billion for 2020, says eMarketer, which would give the company a 12.2% share of the global e-commerce market.
Beyond Amazon’s sales to consumers, another huge contributor to Amazon’s sales is the Amazon Web Services division, which provides cloud-based back-end services to many websites, including Netflix, Airbnb, and Disney.
AWS provides about 12% of Amazon revenues and most of its profits, along with advertising revenues. Amazon’s 2019 revenues: $280.5 billion.
Amazon (NASDAQ: AMZN) is scheduled to announce Q3 earnings results on Thursday, October 29th, after market close.
The consensus EPS estimate is $7.36, and the consensus Revenue Estimate is $92.56B (+32.3% Y/Y).
AWS net sales estimate $11.52B (+28.2%).
Operating income is seen at $4.73B; Fulfillment expense is seen at $14.75B.a
The digital surge from Covid-19 may buoy Amazon’s 2021.
“COVID-19 and the stay-at-home response for many consumers should result in another quarter of revenue upside in Q3, notwithstanding the timing shift for Prime Day (excluding India) to Q4 from Q3,” Wedbush analysts led by Michael Pachter wrote.
Unusually announced by the company, Prime Day event sales numbers from small- and medium-sized businesses saw 60% Y/Y growth to $3.5B.
Over the last 1 year, Amazon has beaten EPS estimates 75% of the time and has beaten revenue estimates 50% of the time.
Over the last 3 months, EPS estimates have seen 30 upward revisions and 1 downward. Revenue estimates have seen 38 upward revisions and 0 downward.
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