Amazon's Q4 Forecast: Strong Growth Prospects Ahead

AMZN on track for earnings beat with robust sales growth expected. The company anticipates net sales between $181.5B - $188.5B in Q4, positively impacting stock valuations.

Date: 05-02-2025

AI Rating: 7

Earnings Per Share (EPS): The report indicates an estimated EPS of $1.52 for the fourth quarter, showing a significant increase of 50.5% compared to the prior year. This substantial jump points to an optimistic turnaround in earnings, which bodes well for investor sentiment.

Revenue Growth: Amazon expects net sales to land between $181.5 billion and $188.5 billion, representing a growth of 7-11% year-over-year. Additionally, the Zacks Consensus Estimate aligns closely at $187.28 billion, reflecting a growth of 10.19% compared to last year.

Key Growth Factors: Factors driving this positive outlook include the robust Prime ecosystem, which enhances customer loyalty and spending, as well as an uptick in grocery and physical retail sales. The physical store sales are projected to reach $5.43 billion, which indicates a year-over-year increase of 5.5%.

The AWS segment is also poised for strong performance with estimated sales of $28.33 billion, marking a 17.1% boost from the previous year. This growth is underpinned by strategic advancements in generative AI and broader cloud services.

Conclusion: Overall, the report suggests a solid performance from Amazon across its retail and AWS operations in Q4, with potential upwards revisions to guidance as the earnings release date approaches. This indicates a favorable environment for stock appreciation based on anticipated strong fundamentals.

Stocks: AMZN LEE LUMN BOX