Amazon.com, Inc. is expected to release the earnings report for the fiscal quarter ending March 2023 on Apr 27, 2023, after market close. According to Zacks Investment Research, based on 13 analysts’ forecasts, the consensus EPS estimate for this quarter is $0.21, the same numbers we had for the same quarter last year and Q4 2022.
After Q1 2021 that due to the quarantine, online shopping caused a 43.8% growth in the company’s revenue; the revenue growth rate was always lower than the previous quarter. For this quarter consensus estimate for revenue is 124.55B, which will show only 7.3% growth and will be Amazon’s lowest YOY growth rate in at least several years.
One of the key metrics to watch in the AMZN report is its income from Amazon Web Services (AWS). AWS is one of the world’s most comprehensive and broadly adopted clouds, offering over 200 fully featured services from data centers globally. Since the market expects a deceleration in AWS income, we can see some downside risk to the overall Q1 and even Q2 AMZN Revenue and Operating Income estimates.
On the other hand, we are optimistic about Amazon Prime’s effects. It gives users access to additional services otherwise unavailable or available at a premium to other Amazon customers. Amazon is trying to increase its Prime paid subscriptions for its services in various countries.
We should remember its plans for small business relationships, technological edge, and retail consolidation. In the retail sales field, grocery, pharmacy, fashion, and home will have more weight on reports; therefore, we better watch the detailed info in these sections as well. Retail sales services, media, and advertising offerings can increase the company’s average revenue and net income. Putting all mentioned factors together, we can stay optimistic about earnings results.
From the technical point of view, the downtrend is over, creating new higher lows. Price is increasing, and OBV is almost flat, which means we can count on bulls, especially if it is trading above $100. Above this level, we can see a 2023 high at $114 as the first target and then $122. Conversely, $93 and $86 can be the targets if the price declines under the $100 key pivot.
