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TD Cowen sees Amazon topping FQ2 earnings expectations By Investing.com


© Reuters. TD Cowen sees Amazon (AMZN) topping FQ2 earnings expectations

TD Cowen analysts expect Amazon (NASDAQ:) to beat analyst expectations for the second quarter. The analysts project Amazon’s Q2 revenue at $132.8 billion, signaling an upside of 1.1% relative to consensus ($131.4B).

Accelerating e-commerce revenue and ad revenue growth should fuel Amazon’s outperformance, they argue. These positives should also offset AWS revenue deceleration as a result of the continued optimizations.

“We continue to like AMZN shares as we expect Op Income (GAAP) margins to rise to 4.2% in ’23 vs. 2.4% in ’22 as we view AMZN as being more focused on cost containment and driving efficiencies across segments, while capital intensity moderates following AMZN’s historic fulfillment investment cycle over the past few years,” the analysts wrote in a client note.

AWS revenue is seen decelerating further to +9.5% year-over-year vs. +15.8% year-over-year in Q1.

Amazon shares are up about 55% year-to-date. The stock is up a further 1.2% in premarket.

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