Amazon.com Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Amazon.com, Inc. (NASDAQ:AMZN) will unveil its latest earnings on Tuesday, January 31, 2012. Amazon.com sells millions of products across dozens of product categories on its web site. It also manufactures and sells the Kindle, an e-reader.

Amazon.com, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 16 cents per share, a decline of 82.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 19 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 17 cents during the last month. For the year, analysts are projecting profit of $1.15 per share, a decline of 54.5% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the third quarter, it reported net income of 14 cents per share against a mean estimate of 23 cents. Two quarters ago, it beat expectations by one cent with profit of 38 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 40.5% in revenue from the year-earlier quarter to $18.2 billion.

Analyst Ratings: Analysts are bullish on this stock with 23 analysts rating it as a buy, none rating it as a sell and 10 rating it as a hold.

A Look Back: In the third quarter, profit fell 72.7% to $63 million (14 cents a share) from $231 million (51 cents a share) the year earlier, missing analyst expectations. Revenue rose 43.9% to $10.88 billion from $7.56 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 42.3%, with the biggest boost coming in the second quarter when revenue rose 51% from the year earlier quarter.

The company has seen net income fall in each of the last three quarters. Net income fell 7.7% in the second quarter and 32.8% in the first quarter.

Competitors to Watch: eBay Inc. (NASDAQ:EBAY), Wal-Mart Stores, Inc. (NYSE:WMT), Overstock.com, Inc. (NASDAQ:OSTK), Google Inc. (NASDAQ:GOOG), Barnes & Noble, Inc. (NYSE:BKS), Costco Wholesale Corp. (NASDAQ:COST), GSI Commerce, Inc. (NASDAQ:GSIC), Hot Topic, Inc. (NASDAQ:HOTT), PC Mall, Inc. (NASDAQ:MALL), and Best Buy Co., Inc. (NYSE:BBY).

Stock Price Performance: During October 27, 2011 to January 25, 2012, the stock price had fallen $18.98 (-9.2%) from $206.78 to $187.80. The stock price saw one of its best stretches over the last year between January 31, 2011 and February 14, 2011 when shares rose for 11-straight days, rising 12.2% (+$20.78) over that span. It saw one of its worst periods between December 22, 2011 and December 30, 2011 when shares fell for six-straight days, falling 3.3% (-$5.93) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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