William Blair Increases Amazon.com FY2024 EPS Forecast

On November 4th, 2024, it was announced that William Blair has revised its forecasts for Amazon.com, Inc. (NASDAQ:AMZN) for the fiscal year 2024. In a report published on October 31st, analyst D. Carden raised the earnings per share (EPS) estimate from $4.79 to $5.20. This increase positions Amazon's expected earnings ahead of the current consensus estimate of $4.84 per share.

Additionally, William Blair has projected the EPS for Amazon’s consumer segments for the first quarter of 2025 to be $1.38, with forecasts of $1.37 for the second quarter, $1.55 for the third quarter, and $1.65 for the fourth quarter.

Recent Earnings Report

Amazon.com also reported its quarterly earnings on the same day, indicating robust performance. It posted earnings of $1.43 per share, exceeding analysts' expectations, which were set at $1.14—a positive surprise of $0.29. The company achieved a return on equity of 23.46% and a net margin of 8.04%. For the quarter, Amazon's revenue totaled $158.88 billion, beating the consensus estimate of $157.28 billion and reflecting an 11.0% increase year-over-year from last year’s $0.85 EPS.

Analyst Ratings and Price Targets

Other analysts have also recently updated their estimates for Amazon.com. Bank of America raised its price target from $210.00 to $230.00, maintaining a “buy” rating, while Royal Bank of Canada increased its target from $215.00 to $225.00, rating it as “outperform.” Cantor Fitzgerald reaffirmed its “overweight” rating with a target price of $230.00, and Wolfe Research began coverage with a strong “outperform” rating and a target of $250.00. Barclays also adjusted its price target upwards from $220.00 to $235.00 while giving an “overweight” rating. Overall, a strong consensus indicates that 40 analysts recommend buying Amazon's stock, while two have rated it as a hold. According to MarketBeat.com, the consensus rating stands at “Moderate Buy” with a target price of $246.02.

Current Stock Performance

On Monday, Amazon.com stocks opened at $197.93. The stock has fluctuated significantly over the past year, with a low of $136.47 and a high of $201.20. Financial metrics include a current ratio of 1.10, quick ratio of 0.88, and a debt-to-equity ratio of 0.23. Meanwhile, their market capitalization is approximately $2.08 trillion, with a P/E ratio of 42.38.

Insider Transactions

In related news, CEO Andrew R. Jassy recently sold 20,784 shares, generating about $3.76 million from the transaction. After the sale, Jassy still holds over 2 million shares in the company valued at approximately $371 million. CFO Brian T. Olsavsky also sold shares, totaling around $2.63 million. Collectively, these insider sales resulted in a slight decrease in their ownership but underscore their ongoing commitment to the company.

Institutional Holdings

In institutional trading, firms have been adjusting their stakes in Amazon.com. For instance, Garrison Point Advisors increased its position by 0.3%, while Meridian Investment Counsel grew its holdings by 1.8%. O'Connor Financial Group raised its stake by 2.2% as well, reflecting a broader trend of institutional investors actively trading Amazon shares. Currently, institutional and hedge funds control about 72.20% of Amazon's stock.

Company Overview

Amazon.com, Inc. is a leading global e-commerce and cloud computing company. It sells a variety of consumer products and provides services through both online platforms and physical stores. The company operates across three main segments: North America, International, and Amazon Web Services (AWS), and it also manufactures electronic devices like Kindle and Fire, and produces media content.

Amazon, EPS, Forecast