Amazon set to post weak figures

On Thursday 23 October after the market has closed Amazon is due to post its third-quarter figures. The adjusted earnings per share are expected to fall to -$0.028 from last quarters $0.58.

An Amazon factory
Source: Bloomberg

The company’s sales figures are expected to improve from $19.34 billion up to $20.848 billion. Its third-quarter losses are also expected to increase up to $403.27 million.

Unlike many of the US major corporations Amazon’s track record is patchy at best, as it has failed to meet market expectations almost half the time since the first quarter in 2011.

Amazon has been involved in numerous battles over the cost of literature across different formats. The company’s discussions with Hachette Book Group could at best be described as robust. In contrast it has managed to agree a multi-year deal with Simon & Schuster over pricing for both hard copies and digital books. It is believed that the split will entitle Amazon to 30% of the proceeds with both the author and publisher getting 35%.

Amazon has driven for prices to be lowered as it believes that lower costs will drive up sales and ultimately improve revenues. Considering the company accounts for roughly 60% of the online market its opinion counts. 

The share price has recently dropped below $300, but the more recent good news regarding the Simon & Schuster deal should help prop it up. However this is only in the short term before we see a retest of the May $284 lows. 

Amazon has driven for prices to be lowered as it believes that lower costs will drive up sales and ultimately improve revenues. Considering the company accounts for roughly 60% of the online market its opinion counts. 

The share price has recently dropped below $300, but the more recent good news regarding the Simon & Schuster deal should help prop it up. However this is only in the short term before we see a retest of the May $284 lows. 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by analysts