Amazon (AMZN) will report its first-quarter (Mar) earnings today after the market close. A conference call is scheduled for 17:30 ET.
Q1 FactSet consensus expects EPS of $1.03 (versus $0.31 last year) on revenue of $142.5 bln (+12.4% yr/yr).
On its last call, Amazon projected Q1 operating income of $8.0-$12.0 bln (vs. $4.8 bln last year) and revenue growth of 8-13%, consistent with FactSet’s estimate. AWS and advertising were highlighted as key growth drivers.
Focus areas include AWS margin expansion, given recent AI infrastructure investments, and tariff impacts on e-commerce margins, as new trade policies could raise costs for imported goods. Updates on cost-cutting measures and Prime subscription trends will also be closely watched.
The Street expects Q1 AWS revenue of $24.5 bln (vs. $21.4 bln last year), North America retail at $85.2 bln (vs. $76.9 bln), and advertising at $11.8 bln (vs. $9.5 bln).
TECHS:
Amazon is expected to provide Q2 guidance, though it may be qualitative due to tariff uncertainties. FactSet’s Q2 estimates are EPS of $1.15 and revenue of $148.9 bln.
AMZN has a $2.1 tln valuation and trades at 36 times FY25 earnings.
Based on the weekly AMZN Weekly May02 $190 straddle, the options market is pricing in a move of ~7% in either direction by weekly expiration (Friday).
Stocks to watch: NVDA, MSFT, GOOGL
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