What To Expect From Amazon’s Second Quarter Earnings

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Amazon (NASDAQ:AMZN) is scheduled to report its second quarter results on July 26. The e-commerce giant has reported strong revenue growth in recent years, driven by Amazon Web Services (AWS) as well as its core commerce business. Amazon has consistently managed to sustain high revenue growth despite the large base factor. We expect this trend to continue through the end of the year. The company’s guided range for operating income for the quarter ranges from $1.1-1.9 billion, as compared to $630 million in Q2’17. Consensus estimates  for Amazon’s earnings per share for the March quarter also range from $1.50 to $3.10 per share, compared to around 40 cents a share in the comparable prior year period.

We forecast Amazon North America revenue to be driven by consistent growth in e-commerce complemented by an increase in Prime subscription fees, sales of Amazon’s products such as Echo and an increase in grocery sales due to the addition of Whole Foods. Resulting North America revenues are expected to be up by over 35% on a y-o-y basis to nearly $31 billion. Similarly, we forecast Amazon International revenues to increase 30% over Q2’17 to $15 billion. Amazon Web Services revenues are expected to remain the fastest growing revenue stream with a 45% revenue growth to nearly $6 billion for the quarter. We have summarized our forecasts and expectations in an interactive earnings preview dashboard for Amazon where you can change expected segment revenue and income margin figures to gauge how it will impact the company’s expected results.

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See our complete analysis for Amazon

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