What to Expect When Amazon.com Inc. (AMZN) Reports Quarterly Earnings

On July 28, Internet behemoth Amazon.com Inc. (NASDAQ: AMZN) will issue its second-quarter earnings report. On Wall Street, there is no agreement on what the firm will reveal. Last quarter’s results fell short of forecasts, and record inflation continues to weigh on the company’s operations this quarter.

The macroeconomic situation is expected to have a significant influence on AMZN sales, according to Wall Street. So far, the corporation hasn’t lost much owing to inflation, but Americans’ non-core spending might be drastically reduced if a recession becomes a genuine danger.

In addition, Amazon.com Inc. (AMZN) will face a challenging comparison in the second quarter of 2022 due to strong growth in e-commerce last year. Another disadvantage will be the shift of Prime Day’s discount day from the second to the third quarter. There are also concerns that the stronger dollar may harm Amazon’s foreign exchange revenues.

According to Amazon.com Inc. (AMZN) management, revenue will increase by 3-7 percent year on year in the second quarter. Wall Street expects growth of approximately 5.5 percent. At the same time, Amazon does not provide profit estimates, instead expressing simply expected operational performance.

Management anticipates an operational result of between $1 billion and $3 billion in operating income. The corporation generated an operating profit of $7.7 billion in the second quarter of last year.

Remember that Amazon.com Inc. (AMZN) analysts presented a second-quarter projection that fell short of Wall Street’s expectations. As a result, it is reasonable that specialists are paying close attention to the prediction that the firm is developing for the third quarter.

Prime Day is likely to provide a significant boost to the e-commerce behemoth. Analysts expect Amazon.com Inc. (AMZN) revenue to increase 15% year on year in the third quarter and profits per share to increase 16%.

AMZN’s stock has risen 7.81 percent in the last week. Looking at its price performance over the last three months, the stock is down -17.45 percent, down -19.28 percent over the last six months, and down -26.57 percent since the beginning of the year.