Amazon Earnings Growth Positive but Stock Faces Headwinds

Amazon is experiencing pressure on shares, down -14.9% over the past month. However, strong earnings growth is anticipated with a projected EPS increase of +22.1% in the current quarter. Investors should stay alert on potential rebounds as the company has shown consistent earnings surprises.

Date: 20-03-2025

AI Rating: 7

Earnings Per Share (EPS): Amazon is projected to post earnings of $1.38 for the current quarter, indicating a significant increase of +22.1% compared to the year-ago quarter. This positive trend continues into the current fiscal year, with a consensus EPS estimate of $6.32, representing a change of +14.3% from the previous year. For the next fiscal year, the anticipated EPS of $7.44 suggests an increase of +17.7% from the prior year.

Revenue Growth: Amazon's recent performance indicates a revenue of $187.79 billion in the last reported quarter, which represents a year-over-year growth of +10.5%. The sales estimate for the current quarter stands at $154.82 billion, pointing to a +8% increase year-over-year. Projections for the current and next fiscal year indicate revenue growth of +9.4% and +10.3%, respectively. This consistent upward trend in revenue indicates solid financial health, which typically supports stock price increases.

Despite these positive indicators, it's worth noting that Amazon’s stock price has trended downward by -14.9% in the past month, which may be concerning for investors. The Zacks Rank #3 suggests that Amazon may perform in line with the market, reflecting a wait-and-see approach by analysts. Furthermore, while EPS surprises have been positive and the company has consistently beat revenue estimates, maintaining investor confidence will depend on whether these earnings projections are realized. Overall, the balance of solid earnings growth against recent stock performance presents a complex picture for investors.

Stocks: AMZN