/Amazon_com%20Inc_%20%20package%20by%20-%20AdrianHancu%20via%20iStock.jpg)
Seattle, Washington-based Amazon.com, Inc. (AMZN) is one of the world’s largest e-commerce companies, offering retail sales of consumer products, advertising services, and subscriptions. Valued at a market cap of $2.4 trillion, the company also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and Eero. It is scheduled to announce its fiscal Q2 earnings for 2025 after the market closes on Thursday, Jul. 31.
Before this event, analysts project this e-commerce giant to report a profit of $1.32 per share, up 7.3% from $1.23 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $1.59 per share in the previous quarter topped the consensus estimates by 17.8%.
For the full year, analysts expect AMZN to report EPS of $6.27, up 13.4% from $5.53 in fiscal 2024. Its EPS is expected to further grow 15.8% year-over-year to $7.26 in fiscal 2026.
Shares of AMZN have rallied 19.1% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 12.7% uptick and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 15% return over the same time frame.
On May 1, Amazon.com released its Q1 results, and its shares plunged marginally in the following trading session. The company’s revenue increased 8.6% year over year to $155.7 billion, marginally surpassing analyst expectations. Moreover, its net income of $1.59 per share grew 62.2% from the same period last year and came in 17.8% above the consensus estimates. Strong growth across all its reportable segments aided the results.
Wall Street analysts are highly optimistic about Amazon’s stock, with an overall "Strong Buy" rating. Among 54 analysts covering the stock, 47 recommend "Strong Buy," six indicate "Moderate Buy," and one suggests a "Hold” rating. The mean price target for AMZN is $249.68, implying an 11.5% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
