Bank of America Securities Analyst Justin Post Amazon.com, Inc. (NASDAQ: AMZN) The results are scheduled to be released on February 6 ahead of the company's fourth-quarter results. Analysts maintained a buy rating with a price expectation of $255.
Analysts expect Amazon to report excellent results from implementation and number of leverage.
The analyst's $187 billion sales estimate is consistent with consensus, and the $19.7 billion GAAP operating profit forecast exceeds the street's $18.9 billion.
Analysts added that retail data supports revenue growth, and AWS could hit a 19%-20% growth expectation with the help of AI contribution (neutral Azure Read-cross).
Notably, analysts wrote that the in-quarter data was positive, Bloomberg Second Measures (BSM) showed stable year-on-year growth, and BAC credit and debit card data showed accelerated online spending.
The street estimates that despite data indicating stability or acceleration, North America's retail sales growth was 8%, a slight slowdown from the third quarter, analysts added.
POST expects North America retail margin to be 90bps y/y to 7.0% (with 6.7% consensus), led by unit growth leverage and good holiday inventory and transportation.
The analyst recently revised his first-quarter revenue estimate to increase the FX headwind consideration, which is expected to have an impact of 110bps compared to the street's 40BPS estimate.
Post expects sales guidelines for the first quarter to be $15.25 billion and $158.25 billion (street estimates $158.7 billion), meaning a 17% sequential contraction in the midpoint.
It is worth noting that this month, the company will close Go stores in Woodland Hills, California, marking a half of its Go store portfolio since early 2023, according to a WSJ report, 16 stores were left in four states.
The report highlights that as companies close more convenience stores, retail industry-based Nick Egelanian, president of retail at consultant firm Siteworks, commented that Amazon does not seem to grasp the nature of retail.
Price actionAMZN shares rose 1.78% with the last check at $241.65.
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| date | company | action | from | arrive |
|---|---|---|---|---|
| March 2022 | German Bank | Start coverage | purchase | |
| February 2022 | Tigress Financial | persist in | purchase | |
| February 2022 | Credit Suisse | persist in | Outperform the market |
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