{"id":539970,"date":"2010-04-22T12:56:35","date_gmt":"2010-04-22T16:56:35","guid":{"rendered":"http:\/\/www.businessinsider.com\/amazon-earnings-preview-wall-street-looking-for-strong-in-line-quarter-2010-4"},"modified":"2010-04-22T12:56:35","modified_gmt":"2010-04-22T16:56:35","slug":"amazon-earnings-preview-wall-street-looking-for-strong-in-line-quarter-amzn","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/539970","title":{"rendered":"AMAZON EARNINGS PREVIEW: Wall Street Looking For Strong, In-Line Quarter (AMZN)"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/image\/4b1bdff70000000000d9686a-358-268\/jeff-bezos-kindle-amazon.jpg\" border=\"0\" alt=\"jeff bezos kindle amazon\" width=\"358\" height=\"268\" \/><\/p>\n<p>Amazon reports earnings after the close of the market today.&nbsp; We&#8217;ll be following the earnings live at 4 PM EST here.<\/p>\n<p><strong>The Bottom Line:<\/strong> Despite risks tied to the company&#8217;s exposure to physical media like books and console games (consumers are migrating to increasingly competitive digital formats), Amazon remains the biggest and strongest e-commerce franchise online and its third-party business continues to outpace competitors like eBay.&nbsp;<\/p>\n<p>The company has a strong, innovative management team that is transitioning the company to digital formats (like the Kindle and Amazon MP3) while maintaining its core e-commerce foothold.<\/p>\n<p>The Street is looking for about 30% same-store Q1 sales growth, a modest deceleration from the 34% during Q4 &#8217;09, which was driven by a strong holiday season.&nbsp; <a href=\"http:\/\/www.tbiresearch.com\/e-commerce-companies-seeing-strong-q110-results-strength-has-continued-after-holiday-season-2010-3\">Calls to industry executives during the quarter <\/a>and yesterday&#8217;s in-line eBay results give us confidence the company will meet expectations.&nbsp; If management provides conservative guidance for the remainder of the year like eBay did, the expensive AMZN shares could take a hit.&nbsp;<\/p>\n<p><strong>Background:<\/strong> The AMZN shares have modestly underperformed the S&amp;P and NASDAQ this year, but trade at a pretty rich 23 times 2010 EV\/EBITDA.&nbsp; As a result, there is little room for missteps when the company reports earnings this evening.&nbsp; We don&#8217;t expect the company will miss earnings, but eBay&#8217;s conservative outlook does leave open the possibility that Amazon could do the same, potentially impacting the stock negatively.<\/p>\n<p><strong>Key Consensus Estimates:<\/strong><\/p>\n<ul>\n<li><strong>Revenue:<\/strong> $6.9 Billion.<\/li>\n<li><strong>Operating Income:<\/strong> $466 Million.<\/li>\n<li><strong>GAAP EPS:<\/strong> $0.61.<\/li>\n<li><strong>Key Items To Watch Out For:<\/strong> Kindle, third-party sales, update on Zappos, digital media sales, web services.&nbsp;<\/li>\n<\/ul>\n<p>Here is an excellent snapshot from Citi analyst Mark Mahaney: (<a href=\"http:\/\/www.businessinsider.com\/amazon-q110-earnings-cheat-sheet-2010-4\">click to enlarge<\/a>):<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/static.businessinsider.com\/image\/4bd07ce97f8b9aff39fe0300\/amzn-cheat-sheet.png\" border=\"0\" alt=\"AMZN Cheat Sheet\" width=\"625\" height=\"278\" \/><\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/amazon-earnings-preview-wall-street-looking-for-strong-in-line-quarter-2010-4#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/FHWdrXRHaMw\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon reports earnings after the close of the market today.&nbsp; We&#8217;ll be following the earnings live at 4 PM EST here. The Bottom Line: Despite risks tied to the company&#8217;s exposure to physical media like books and console games (consumers are migrating to increasingly competitive digital formats), Amazon remains the biggest and strongest e-commerce franchise [&hellip;]<\/p>\n","protected":false},"author":400,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-539970","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/539970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/400"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=539970"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/539970\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=539970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=539970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=539970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}