Earnings Imminent

S&P 500 (NYSE:SPY) component (NASDAQ:AMZN) will unveil its latest earnings today after-the-bell, Thursday, October 25, 2012. sells millions of products across dozens of product categories on its web site. It also manufactures and sells the Kindle, an e-reader. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 8 cents per share, a swing from profit of 14 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from 12 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 8 cents during the last month. Analysts are projecting profit to rise by 47.8% versus last year to 70 cents.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported net income of one cent per share versus a mean estimate of profit of 2 cents per share. In the first quarter, the company beat estimates by 21 cents.

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A Look Back: In the second quarter, profit fell 96.3% to $7 million (one cent a share) from $191 million (41 cents a share) the year earlier, missing analyst expectations. Revenue rose 29.5% to $12.83 billion from $9.91 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 27.9% in revenue from the year-earlier quarter to $13.92 billion.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $19.99 (9.1%), from $220.01 to $240. The stock price saw one of its best stretches over the last year between April 23, 2012 and April 30, 2012, when shares rose for six straight days, increasing 23.2% (+$43.66) over that span. It saw one of its worst periods between September 19, 2012 and September 26, 2012 when shares fell for six straight days, dropping 4.6% (-$12.01) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 35.4% over the last four quarters.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 65.5% over the past four quarters.

Analyst Ratings: With 23 analysts rating the stock a buy, none rating it a sell and 10 rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.08 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.16 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.5% to $10.96 billion while assets decreased 3% to $11.79 billion.

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

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