RBC Capital First Take on Amazon.com (AMZN) Q3 2022 Earnings

RBC Capital analyst Brad Erickson reiterated an Outperform rating and $175.00 price target on Amazon.com (NASDAQ: AMZN).

The analyst comments "AMZN reported Q3 revenue in-line with the Street ($127.1B vs. Street at $127.4BE) and EPS above (+$0.28 vs. Street at +$0.22E) but importantly, it missed EBIT ($2.5B vs. Street at $2.9BE) which was near the midpt of the guidance range. In terms of segments, AWS was the primary downside contributor and to a lesser degree 1P and Subscription though partially offset by strength in 3P. The company guided Q4 revenue to $140-148B which was well below the Street's $155.7BE and EBIT also below expectations with an outlook of $0-$4B vs. consensus at ~$5B. Key questions on the call will likely be why Q4 utilization isn't having a bigger impact on Q4 EBIT and how much decel and margin compression is AWS facing moving forward."

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 $115.66 yesterday.

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