Amazon (NASDAQ: AMZN), the e-commerce and tech giant, will release its earnings report for the first quarter of 2024 after the market closes today. Wall Street analysts anticipate revenue of around $142.7 billion and net income of around $9 billion for the quarter. The consensus estimate for earnings per share (EPS) is 81 cents.
Investors and analysts will examine Amazon’s plans and investments related to artificial intelligence (AI) and the overall profitability of its retail operations. The company’s AI initiatives, particularly in the cloud computing space with Amazon Web Services (AWS), will be compared to those of Microsoft (NASDAQ: MSFT) and Google (NASDAQ: GOOG).
The performance of Amazon’s North America and international retail segments will naturally also be scrutinized, focusing on changes in profitability and market share.
Amazon’s Previous Quarter Results and Fiscal Year 2024 Expectations
In the previous quarter, Amazon delivered strong results with significant growth compared to last year’s equivalent period. The company reported an EPS of $0.81 for the quarter that ended March 2024, which was up from $0.31 in the corresponding quarter of the previous year. While analysts had initially set a high expectation of $0.92 EPS, the consensus ultimately settled at $0.81 for the quarter.
Looking ahead to fiscal year 2024, analysts have made slight upward revisions to their EPS forecasts, indicating a positive outlook for Amazon’s future performance.
The company’s continued growth in AWS and its advertising business will be key areas of focus. AWS is expected to increase sales, potentially signaling a recovery in cloud business spending.
Dividend Possibility, Capex, and Share Buybacks
Investors and analysts will closely watch several potential developments and areas of interest.
One such area is the possibility of Amazon introducing a dividend, following in the footsteps of tech giants like Meta (NASDAQ: META) and Google. However, most analysts consider this unlikely at present.
Another important aspect will be updates on Amazon’s capital expenditures (capex) and any new information regarding share buybacks. Given the company’s substantial investments in technology and infrastructure, these details will provide insights into Amazon’s financial strategies and priorities.
Do you think Amazon will beat expectations? Let us know in the comments below.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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