Evercore Partners Lowers Q3 Margins on Amazon.com (AMZN); Despite Strong Qtr, There's A Long Way To Go
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Price: $262.65 -0.94%
Rating Summary:
68 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
68 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Evercore Partners maintains an 'Overweight' on Amazon.com (NASDAQ: AMZN) price target of $250.00.
Analyst, Ken Sena, said, "Despite the strong quarter, GAAP EBIT margin of 0.8% versus 2.0% in the prior year shows that the company still has a ways to go before getting back to historic margin levels. Nevertheless, we believe many of the investments being made for consumers, merchants, and Enterprise will pay off for its investors. Moreover, at 1.2x revenues, we view Amazon at within close range of its historical trough revenue multiple, leading us to believe that shares could see upside as product mix continues to shift towards 3P (booked net vs. gross), AWS growth remains strong, and fulfillment center spending cycles."
"For 3Q12, we are leaving our revenue estimates largely unchanged at $14.2 billion, though it is at the high end of the company's $12.9-$14.3 billion guidance range, as we believe the company's product roadmap (e.g., new tablet, other) could drive additional revenue upside. However, we are lowering adjusted CSOI margin to 1.8% from 3.3% previously, or $260 million, above the high end of the company's -$75 to $225 million guidance range."
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 $220.01 yesterday.
Analyst, Ken Sena, said, "Despite the strong quarter, GAAP EBIT margin of 0.8% versus 2.0% in the prior year shows that the company still has a ways to go before getting back to historic margin levels. Nevertheless, we believe many of the investments being made for consumers, merchants, and Enterprise will pay off for its investors. Moreover, at 1.2x revenues, we view Amazon at within close range of its historical trough revenue multiple, leading us to believe that shares could see upside as product mix continues to shift towards 3P (booked net vs. gross), AWS growth remains strong, and fulfillment center spending cycles."
"For 3Q12, we are leaving our revenue estimates largely unchanged at $14.2 billion, though it is at the high end of the company's $12.9-$14.3 billion guidance range, as we believe the company's product roadmap (e.g., new tablet, other) could drive additional revenue upside. However, we are lowering adjusted CSOI margin to 1.8% from 3.3% previously, or $260 million, above the high end of the company's -$75 to $225 million guidance range."
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 $220.01 yesterday.
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