Will Amazon.com, Inc. (NASDAQ:AMZN) avoid an earnings miss in its Q3 earnings release?
Shares of Jeff Bezos led Amazon.com, Inc. (NASDAQ:AMZN) have lost momentum ahead of its third-quarter earnings which the company is scheduled to report today after the market close. Amazon stock has been almost in a downtrend since the beginning of last week in spite of having many reasons to climb higher. On top of it, AMZN stock is yet to recover from its post-earnings sell-off in July end. Hence, a lot is riding on the Seattle, Washington based company's Q3 earnings to drive the recovery in Amazon stock and for it resume its uptrend.
Investor sentiment is little shaky ahead of earnings on account of the big EPS miss in the last quarter earnings. Coming to Street estimates, analysts expect the eCommerce giant to report a top line of $42.14 billion, which would translate into a good 28.8% YoY revenue growth. While the revenue growth has never been a problem for Amazon, it's the EPS which disappointed investors in the second quarter earnings as the company missed the Street estimate by a massive margin.
For the latest quarter, the Street's consensus estimate for EPS is a non-GAAP earnings of 3 cents per share, a drastic drop from the year-ago quarter EPS of 52 cents, implying a 94% YoY decline. There's little doubt in concluding that Amazon stock could see another correction if the company misses on the EPS target again. Though the current earnings whisper for Amazon which is a non-GAAP earnings of 8 cents per share does suggest that it could deliver an earnings beat.
Apart from all this, the third quarter earnings would have a special focus on the impact of Whole Foods' acquisition on the online retail giant's financials. Further, the operating income and Q4 guidance are other crucial metrics which could have a big impact on AMZN stock's fortunes. For a detailed preview of the AMZN stock's Q3 earnings and more insights about how to play Amazon stock ahead of earnings, please go through our Amazon earnings preview.
Can Q1 Earnings propel Microsoft Corporation (NASDAQ:MSFT) stock to new all-time highs?
The so called 'boring' Microsoft Corporation (NASDAQ:MSFT) stock has outperformed the broader markets with year-to-date returns of nearly 27%. Under the leadership of Satya Nadella, Microsoft has charted new all-time highs and is also presently trading near its all-time highs. MSFT stock has seen a steady rally over the last one month going into earnings, gaining more than 7%. Now, the expectations are really high from the Redmond, Washington-based tech company's Q1 earnings, which it is set to report today after the closing bell.
In spite of the recent highs, there are expectations from Q1 earnings to propel the Microsoft stock much higher. Moving on to analyst estimates, Wall Street expects the company to report earnings per share of 72 cents on a revenue of $23.56 billion. The analyst estimates translate to a 5.5% YoY growth in revenue whereas earnings see a decline of 4 cents from the year-ago quarter EPS of 76 cents per share. The recent earnings history has been very good and the earnings whisper for MSFT stock of 76 cents also suggests that the company would deliver a beat and match the last year earnings number.
Microsoft stock has run up quite a bit ahead of earnings by its own standards. However, that also elevates the risk in the context of today's earnings announcement. Either way, Microsoft's earnings release promises to be an interesting event today. For those interested, here's a detailed look at what to expect from Microsoft earnings today.
Can Intel Corporation (NASDAQ:INTC) Q3 earnings set INTC stock on a new rally?
The third earnings for the day is of Brian Krzanich led Intel Corporation (NASDAQ:INTC), also scheduled after the market close. Shares of the Mountain View, California based semiconductor giant have seen a strong bullish rally after the last quarter earnings and Intel stock is up by nearly 18% over the last three months. This has been very unlike INTC stock from the first half of 2017 when it was largely subdued. The question now is, whether the latest Q3 earnings will set the Intel stock on a new rally or not?
First, we shall have a look at the Street estimates. The average analyst EPS estimate for the Chipzilla in Q3 is 80 cents per share same as the last year same quarter EPS number. The chipmaker is expected to deliver a revenue of $15.73 billion which translates to a marginal YoY decline of 0.3%. One of the archrivals of the semiconductor giant, AMD (NASDAQ:AMD) the other day posted strong top line and bottom line numbers. It's been widely discussed AMD is closing down on Intel in the CPU market and mounting a stiff challenge in its near monopoly server market. Now, the onus is on the Chipzilla, to prove that it can fend off the challenge from its much smaller rivals Dr. Lisa Su led AMD. The performance of the CPU and server segment will be closely watched as those are the segments where AMD seems to be gaining traction at the cost of Intel.
As we had noted in our recent detailed Intel Q3 earnings preview, while one can expect Intel to deliver another earnings beat, but the chances of any steep gains in Intel stock immediately following the earnings look grim. The earnings whisper number, which is believed to be Street's unofficial view, suggests an EPS of 82 cents, implying a 2 cents earnings beat.
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