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."
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Shares of Amazon.com closed at $115.66 yesterday.