RBC Capital analyst Mark Mahaney came out with his prediction on Amazon.com, Inc. (NASDAQ:AMZN), as the company is scheduled to report its first-quarter results on Thursday, April 23 after market close. Additionally, the analyst reiterated an Outperform rating on the stock, with a price target of $400, which represents a slight upside potential from current levels.
Mahaney noted, “We expect $22.0B in revenue, $419MM in pro forma operating income, and a GAAP EPS loss of $0.12 for the March quarter. Our revenue estimate is slightly below current consensus of $22.4B and slightly above the midpoint of company guidance, and our GAAP EPS estimate is modestly higher than the consensus estimate of a loss of $0.16. In terms of Q2 guidance, we view Street June quarter revenue estimates as a tad aggressive. The 1% Q/Q decline implied by Street estimates is generally consistent with the high-end guide of the past two years, but adverse currency trends carry slightly elevated levels of risk to Street Q2 Revenue and CSOI estimates.”
Bottom line: “We believe Street estimates for the March quarter are reasonable, although we have more confidence in bottom line estimates and believe FX is more likely to cause a top-line miss than a beat.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Mahaney has a total average return of 23.6% and a 67.3% success rate. Mahaney has a 24.9% average return when recommending AMZN, and is ranked #12 out of 3575 analysts.