Amazon.com, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Amazon.com, Inc. (NASDAQ:AMZN) will unveil its latest earnings on Tuesday, October 25, 2011. 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 profit of 25 cents per share, a decline of 51% 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 49 cents. Between one and three months ago, the average estimate moved down. It has risen from 23 cents during the last month. For the year, analysts are projecting net income of $1.93 per share, a decline of 23.7% from last year.

Last quarter, the company came in at profit of 38 cents per share against a mean estimate of net income of 37 cents per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by 16 cents.

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

Wall St. Revenue Expectations: Analysts are projecting a rise of 44.6% in revenue from the year-earlier quarter to $10.93 billion.

Analyst Ratings: Analysts are bullish on this stock with 19 analysts rating it as a buy, none rating it as a sell and nine rating it as a hold.

A Look Back: In the second quarter, profit fell 7.7% to $191 million (41 cents a share) from $207 million (45 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 51% to $9.91 billion from $6.57 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 41%, with the biggest boost coming in the most recent quarter when revenue rose 51% from the year earlier quarter.

The company has seen net income fall in each of the last two quarters. Net income dropped 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), Apple (NASDAQ:AAPL) and Best Buy Co., Inc. (NYSE:BBY).

Stock Price Performance: During August 23, 2011 to October 19, 2011, the stock price had risen $37.98 (19.6%) from $193.55 to $231.53. 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 $51.53 (+28.6%) year to date.

(Source: Xignite Financials)

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.