Amazon (AMZN) 2Q on Tap; Monness Analyst Sets Expectations


Amazon (NASDAQ:AMZN) investors have had plenty to be thankful for. So far this year, the stock has avoided the rout that has claimed a number of its tech brethren. It has gained 56% in 2018, crushing the performance of the S&P 500.

The e-commerce giant is scheduled to report financial results for the second-quarter this evening, after enjoying a record Prime Day and hosting a jampacked AWS Summit with new innovations unveiled, highlighting the company’s e-commerce and cloud momentum. However, ahead of the big event, Amazon shares are dipping nearly 2% to 1,822.

Monness’ top analyst Brian White expects Amazon to slightly exceed his 2Q:18 revenue estimate of $53.41 billion and at least meet his EPS projection of $2.54 (Street is at $2.50). White is modeling 45% YoY sales growth in North America to $32.40 billion and international growth of 31% to $15.02 billion. Furthermore, the analyst expects AWS to deliver the fastest segment growth rate with sales up 46% YoY in 2Q:18 to $5.99 billion.

For 3Q:18, White is projecting sales of $58.94 billion and EPS of $2.12 (Street is at $1.72).

Net net, White remains bullish on the AMZN stock, reiterating a Buy rating, with a price target of $2,200, which implies an upside of 20% from current levels.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian White has a yearly average return of 17.3% and a 69% success rate. White has a 13.7% average return when recommending AMZN, and is ranked #93 out of 4840 analysts.

TipRanks shows a large amount of bulls liking the odds on this e-commerce king. Out of 42 analysts polled in the last 3 months, 40 are bullish on Amazon stock, while only 2 playing it safe on the sidelines. However, is the stock overvalued or undervalued based on these analysts’ expectations? The 12-month average price target of $1,931 suggests a nearly 6% upside potential from where the stock is currently trading.

 

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