Needham & Company Maintains a 'Hold' on Amazon.com (AMZN); 4Q11 Preview – Expect In-Line Revenue, EPS and Guidance Upside Exists

Needham & Company maintains a 'Hold' on Amazon.com (NASDAQ: AMZN).

Needham analyst says, "We believe Amazon should report 4Q11 revenue results in-line with expectations, but potential EPS upside exists. Our above consensus EPS estimate reflects the strong holiday e-commerce and Kindle Fire demand, with the latter serving as a catalyst to increase demand for high margin digital goods."

"Our 4Q11 revenue estimate is in-line with expectations, but we believe Amazon should report EPS upside as a result of the strong holiday e-commerce and Kindle Fire demand. Our 4Q11 revenue estimate of $18.2 billion is in-line with consensus, but our GAAP EPS estimate of $0.30 is above consensus estimate of $0.18."

"We estimate 4 million 4Q11 Kindle Fire shipments, which could push revenue ahead of expectations and benefit EPS as the increase in Media revenue exceeds the nearly breakeven BOM."

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $193.32 yesterday.

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