Amazon: What to expect from the quarterly report next week

The e-commerce giant will release its results for the second quarter after the market closes on July 26. With stocks up an astounding 82% in the last 12 months – 22% in the last three months alone – investors have high expectations.

FREE: Tips from some of the best investors in the world. Click here for the special report.

The company recently shot all the tubes. In the first quarter, the turnover increased by 43% and operating profit by 92% over the previous year. These results exceeded badysts' consensus estimates and management's expectations. Next week investors are expecting equally impressive growth and good forecasts.

Here's an overview of three important areas to watch out for when publishing Amazon's second quarter report

Revenue Growth

Amazon has seen mbadive sales lately, and investors are sure to make watch out if the company keeps up the pace. After revenue growth of 43% in the first quarter compared to the previous year, management expects second-quarter revenue to be in the range of $ 51 billion to $ 54 billion, or 34% to 42% growth in the first quarter. year-over-year. 19659011] Optimize your stock market returns with this intelligent trading algorithm! (Offer partner)

Considering that the company's results for the past year were at the top of management's forecasts or beyond, it is not surprising that badysts believe Amazon's second-quarter revenue of $ 53.4 billion in the top quarter of this estimate. If true, this would represent growth of about 41% over the previous year.

Revenue Outlook

Obviously, given the recent sharp rise in Amazon stocks, investors are hoping for another quarter of strong growth. Now, the business has to grow in its expensive valuation. In addition, thanks to the 82% increase over the last 12 months, the price / sales ratio of Amazon is now 4.7, compared with 3.3 a year ago.

On the other hand, given the increasingly difficult comparison periods on Amazon and the fact that growth at this level is simply not sustainable in the long run, investors should expect some slowdown. I expect $ 57 billion to $ 59 billion in revenue in the third quarter, which would be equivalent to 30 to 35 percent growth. While this would be a marked slowdown, it would still be a rapid growth so that investors could be optimistic about Amazon's long-term development.

Operating Profit

An area in which Amazon has exceeded expectations is the result of exploitation. For example, in the first quarter, the company realized operating profit of $ 1.9 billion – far more than the $ 300 to $ 1 billion expected by management. The company generated $ 2.1 billion in the fourth quarter of 2017, outperforming the outlook by $ 300 to $ 1.65 billion.

For the second quarter, management has an operating profit of 1 to 1 and 1.9 billion US dollars expected. But just because these benchmarks have been surpbaded lately, investors should not badume that this time a similar rise is in sight. Amazon has made it clear that it is expected to aggressively invest in new growth, which could weigh on returns in the near future.

With the help of artificial intelligence, you can quickly earn your vacation pay! (AD)

CFO Brian Olsavsky outlined plans for major investments in video content, hiring software engineers, and preparing for the first day in the first quarter. In addition, Amazon may generate disproportionate growth in operating income with high sales, but may be lower than expected if sales are at the bottom of the company's forecast.

Amazon's outlook for operating profit in the second quarter is actually the most reasonable indicator for what investors should expect, despite the wide range of opportunities.

Disclaimer: John Mackey, CEO of Whole Foods Market, an affiliate of Amazon, is a board member of The Motley Fool.

The Motley Fool owns and recommends Amazon.

Relax on the Stock Exchange Build a Fortune – Here's How It Works

Systematically and relaxed getting rich with stocks is possible, say the fools. How exactly it works, reveals the brand new special report of The Motley Fool Germany. We will show you how to set the stage in 9 steps to take a rich retreat. Click here to request a free copy of this new report here.

This article was written by Daniel Sparks in English and posted on Fool.com on July 19, 2012. It has been translated to allow our German readers to participate in the discussion.

The article "" comes from Motley Fool. There is no editorial review by FOCUS Online. Contact the responsible person here.

* The article "Amazon: What you can expect from the quarterly report next week" comes from Fool.de. There is no editorial review by FOCUS Online. Contact the responsible person here.