Amazon First-Quarter Earnings: What to Expect

Amazon is set to report its first-quarter earnings after the bell on Tuesday, and analysts are anticipating notable figures. Here’s a rundown of what to expect:

According to LSEG, analysts are expecting:

- Earnings per share: 83 cents

- Revenue: $142.5 billion

Additionally, Wall Street is keeping an eye on the following numbers:

- Amazon Web Services (AWS): $24.5 billion in revenue, according to StreetAccount

- Advertising: $11.7 billion in revenue, according to StreetAccount

Analysts forecast a revenue growth of 12% for Amazon, marking a fourth consecutive quarter of expansion in the low double digits. Earnings are expected to grow even faster, with operating income of $11.2 billion, up over 130% from a year earlier.

Under CEO Andy Jassy, Amazon has implemented cost-cutting measures, optimized its fulfillment operations, and focused on growing profitable services like advertising, cloud computing, Prime memberships, and its third-party marketplace.

While Amazon shares soared 75% last year and gained 19% year-to-date, outperforming the Nasdaq Composite, the company's focus on profitability has led to significant layoffs. The company has laid off more than 27,000 employees since late 2022, with hundreds of staff reductions occurring in its health and AWS businesses during the first quarter of 2024.

Analysts expect a 12% increase in AWS revenue, slightly decelerating from the previous quarter but showing notable growth compared to the first quarter of 2023.

Advertising revenue is projected to grow by more than 23% year-over-year to $11.7 billion. Amazon's digital ad peers, including Meta, Google, and Snap, have all reported earnings that surpassed analysts' expectations.

Wedbush analysts anticipate robust growth in Amazon’s ad business in the first quarter and expect "healthy spending intent for the remainder of 2024." They foresee multiyear growth above the broader digital ad market, driven by various factors including the ongoing expansion of off-platform advertising opportunities and the secular transition to e-commerce.

Wall Street will also be watching to see if Amazon follows its tech peers in announcing its first-ever dividend. With $73.4 billion in cash and equivalents at the end of 2023, Amazon is in a strong position to consider such a move.

The company will discuss its results on a conference call with investors at 5:30 p.m. ET.