com is set up to beat Street estimates for both the September and December quarters, J.P Morgan analyst Doug Anmuth asserts in a research note Monday.
The e-commerce and cloud-computing giant (ticker: AMZN) will report earnings after the close of trading on Thursday alongside reports from
(GOOGL). Street consensus calls for Amazon to report third-quarter revenue of $92.5 billion and profits of $7.25 a share. For the December quarter, the Street expects $111.4 billion and $8.87 a share.
Anmuth maintains his Overweight rating and $4,050 price target on the stock, which he calls his “top idea.” Amazon shares were up 0.2% to $3,209.23 Monday.
He sees upside for the stock even after a rally this year of more than 70%. The analyst notes that Department of Commerce data shows non-store retail sales growth dipped only 150 basis points in the September from a 25.5% peak in the second quarter. (A basis point is one-hundredth of a percentage point.)
He sees a record online holiday shopping season, with an estimated $7.5 billion sales boost from the recent Prime Day promotion. Anmuth thinks the company can beat both sales and profit estimates for the third and fourth quarters. In particular, he thinks the Street’s fourth quarter sales forecast consensus is underestimating the contribution from Prime Day. He’s estimating $114.3 billion, and says buy side consensus is likely closer to $115 billion to $116 billion.
Write to Eric J. Savitz at firstname.lastname@example.org