Earnings Preview: What To Expect From Amazon Today

Amazon
AMZN
Inc. is scheduled to report earnings after today’s close. The stock hit a record split adjusted high of $188.65/share in 2021 and is currently trading near $111/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview:

The company is expected to report a gain of $0.15/share on $145.40 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $0.19/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals:

It is encouraging to see revenue (a.k.a. sales) grow in each of the past four quarters. Earnings are expected to decline 11% in 2022 vs 2021. However, 2023’s forecast is that earnings will grow sharply compared to 2022’s level. That is a good story that will help growth investors sink their teeth into the stock.

A Closer Look At The Technicals:

Technically, the stock fell over the past year as the bear market hit many tech stocks. However, it has recovered nicely from $81.43 which was its 2022 low. Even with that big rally, the stock is still 34% below its 52-week high. The bulls will be very happy to see it gap up after earnings and the bears want to see it gap down.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.

Disclosure, the stock has been previously featured in my FindLeadingStocks.com newsletter.