Amazon.com Inc. Quarterly Earnings on Deck

S&P 500 (NYSE:SPY) component Amazon.com, Inc. (NASDAQ:AMZN) will unveil its latest earnings on Tuesday, July 26, 2011. Amazon.com, Inc. sells millions of products across dozens of product categories on its web site. It also manufactures and sells the Kindle, an e-reader. eBay Inc. Earnings Cheat Sheet: Margins Shrink as Net Income Drops>>

Amazon.com, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 37 cents per share, a decline of 17.8% 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 57 cents. Between one and three months ago, the average estimate moved down, but has risen from 35 cents during the last month. For the year, analysts are projecting net income of $2.40 per share, a decline of 5.1% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of 44 cents per share versus a mean estimate of net income of 60 cents per share. In fourth quarter of the last fiscal year, the company beat estimates by 3 cents.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $9.37 billion in revenue this quarter, a rise of 42.6% from the year ago quarter. Analysts are forecasting total revenue of $46.89 billion for the year, a rise of 37.1% from last year’s revenue of $34.2 billion.

Analyst Ratings: Analysts are bullish on this stock with 22 analysts rating it as a buy, one rating it as a sell and 13 rating it as a hold.

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 38.5%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 41.2% from the year earlier quarter.

The decrease in profit in the first quarter breaks a streak of three consecutive quarters of year-over-year profit increases. Net income fell 32.8% in the first quarter from the year earlier, while the figure rose 8.3% in the fourth quarter of the last fiscal year, 16.1% in the third quarter of the last fiscal year and 45.8% in the second quarter of the last fiscal year.

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), Apple (NASDAQ:AAPL) and Best Buy Co., Inc. (NYSE:BBY).

Stock Price Performance: During April 25, 2011 to July 25, 2011, the stock price had risen $28.07 (15.1%) from $185.42 to $213.49. 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 January 18, 2011 and January 26, 2011 when shares fell for seven-straight days, falling 8.3% (-$15.86) over that span. Shares are up $33.49 (+18.61%) year to date.

(Source: Xignite Financials)

Get Actionable Investing Insights: Check Out Wall St. Cheat Sheet’s newest Feature Trades of the Month!