Amazon Earnings: What Wall Street's Saying

Tickers in this article: AMZN

NEW YORK (TheStreet) –– Amazon earnings, expected after the close Thursday, may show a re-acceleration in the company's all-important third-party business, as it continues to expand channels to sell consumers more goods, both physical and digital.

In Amazon's first-quarter, it earned 23 cents a share on $19.74 billion in revenue, as net sales increased 23% year-over-year. On the conference call, Amazon noted unit growth rose 23% versus 25% last quarter, but third-party (3P) unit growth was 23%, compared to 25% in the prior quarter. Operating income also decreased, falling 19% to $146 million in the first-quarter, as the company continues to invest in its businesses.

Analysts surveyed by Thomson Reuters are expecting Amazon to lose 15 cents a share on $19.34 billion in revenue. Analysts surveyed by Estimize are a little more bullish than sell-side analysts, expecting the company to lose 4 cents a share on $19.39 billion in revenue.

Read More: Amazon Announces Fire Phone

ChannelAdvisor CEO Scott Wingo noted that Amazon's June same-store-sales were 34.4%, an increase compared to May's 28.1%. "The Amazon Fire Phone was announced in June and could have caused some knock-on effects," Wingo wrote in a blog post. Traditionally, ChannelAdvisor's data has proven in line with Amazon's actual results, indicating Amazon may have seen a resurgence in the second-quarter.


Aside from the company's retailing business, which generates most of its revenue, investors will be looking for clues on other initiatives, including Amazon Prime, or the recently announced Fire phone. Amazon typically doesn't go into great detail about the company's products, like Prime, the Kindle Fire tablets or even Amazon Web Services, the company's massive cloud computing arm.

Amazon Prime may be among the most important aspects of the company's business, but the company rarely talks about it, and has never given total user statistics. Research firm Consumer Intelligence Research Partners released a survey that Amazon has around 27 million Prime members, or 44% of Amazon's total customer base. The company recently raised the price of Prime to $99 a year for two-day shipping, but also it also includes access to thousands of television shows and movies, as well as Amazon's streaming music service, aptly named Amazon Music.

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Going into the report, analysts are cautiously bullish. Here's what a few of them had to say.