Earnings Preview: Amazon.com

Apr.25.12 | About: Amazon.com, Inc. (AMZN)

Amazon.com (NASDAQ:AMZN) is expected to report Q1 earnings after the market close on Thursday, April 26 with a conference call scheduled for 5:00 pm ET.

Guidance

Analysts are looking for EPS of 8c on revenue of $12.9B. The consensus range is (16c)-25c for EPS, and $12.54B-$13.35B for revenue, according to First Call. After reporting better-than-expected Q4 EPS and disappointing Q4 revenue numbers, the company gave a Q1 revenue forecast of $12B-$13.4B. In its previous conference call, the company cited unfavorable impact from foreign exchange and the struggling European economy. Investors will look for the latest numbers on its Prime subscribers and Kindle sales numbers. The most recent Prime subscriber estimates were several million below original expectations. The company may also release new information on possible tablet models releasing later this year. In the previous quarter, Amazon has expanded its operations through agreements with Viacom (NYSE:VIA) and Discovery, and acquisitions of Kiva Systems and TeachStreet, but the company is also facing increasing competition from DirecTV (DTV) and Comcast (NASDAQ:CMCSA) in regards to video streaming.

Analyst Views

Amazon was Initiated with Market Perform at JMP Securities, Buy at ThinkEquity, and Neutral at SunTrust. It was also downgraded to Equal Weight at Morgan Stanley and Neutral at BofA/Merrill, citing increasing competition from Apple (NASDAQ:AAPL) and others.