Amazon AMZN is set to report fourth-quarter 2023 results on Feb 1.
Investors are eagerly awaiting the upcoming financial results for Amazon, with the company expecting net sales between $160 billion and $167 billion, representing 7-12% year-over-year growth.
The Zacks Consensus Estimate for net sales stands at $166.26 billion, signifying an 11.4% growth from the prior-year quarter’s reported figure.
Meanwhile, the Zacks Consensus Estimate for fourth-quarter earnings is pegged at 81 cents per share, marking a substantial surge from 21 cents reported in the year-ago quarter.
The upcoming report follows a trend of Amazon outperforming the Zacks Consensus Estimate over the past four quarters, boasting an average surprise of 54.9%.
Amazon’s Potential Performance in Q4
Amazon’s solid holiday performance, backed by strong holiday initiatives, is expected to have significantly contributed to top-line growth. The company recorded record-breaking sales on Black Friday and Cyber Monday, emphasizing the strength of its offerings and customer demand.
Furthermore, the company’s expanding distribution network, Prime-enabled fast delivery, and robust grocery services are predicted to have bolstered its online retail business in the fourth quarter.
The Zacks Consensus Estimate for online store sales reflects a positive outlook, indicating growth of 6.2% from the year-ago reported figure, showcasing the potential of Amazon’s retail prowess.
Release of AWS Features and Offerings
The expansion of Amazon Web Services (“AWS”) portfolio is expected to have positively impacted the company’s performance. AWS introduced various innovations and capabilities, including a palm-based identity, generative AI-powered chatbot, and Supply Chain enhancements, to meet growing customer demand and gain competitive advantage.
Consideration of Amazon’s Device Portfolio
Amazon’s robust Fire products family, portfolio of Echo smart speakers, Blink doorbells, and eero products, combined with Alexa’s evolving features, are anticipated to have contributed substantially to its fourth-quarter financial performance.
However, amidst the promising prospects, concerns about inflationary pressure, geopolitical tensions, and foreign currency headwinds persist.
Evaluating Investment Options
Investors may also consider other stocks, such as Apple (AAPL) and Expedia Group (EXPE), which are projected to have the right combination of elements to deliver positive earnings this season.
Apple, slated to release first-quarter fiscal 2024 results on the same day as Amazon, has an Earnings ESP of +2.13% and a Zacks Rank #2 at present, reflecting a promising outlook.
Meanwhile, Expedia Group’s Earnings ESP of +4.79% and a Zacks Rank are indicative of a favorable position.
Vibrant Prospects for Fourth Quarter 2023 Earnings
The upcoming earnings season paints a promising picture for investors, offering a glimpse into the financial performances of key players in the market. Amid the much-anticipated revelations, companies like Expedia Group and MercadoLibre have garnered significant attention, with analysts and market watchers eagerly awaiting their fourth-quarter results.
Expedia Group’s Positive Outlook
Expedia is set to unveil its fourth-quarter 2023 results on Feb 8. The Zacks Consensus Estimate for EXPE’s earnings stands at $1.67 per share, signaling an impressive 32.5% growth compared to the year-ago quarter. This uptick portends a promising trajectory for the company, indicative of its robust market position and potential for sustained growth.
MercadoLibre’s Anticipated Surge
MercadoLibre, scheduled to report its fourth-quarter 2023 results on Feb 22, is poised to make a significant impact. With a Zacks Consensus Estimate projecting MELI’s earnings at $6.66 per share, the company is anticipated to showcase remarkable growth of 104.9% from the prior-year period’s reported figure. Such substantial potential has earned MercadoLibre a position of interest among investors and analysts alike.
As anticipation builds for these impending earnings releases, the market is buzzing with excitement and curiosity regarding the future trajectories of these industry giants.