Amazon Q4 Earnings Expected to Decline?
Investors will be watching if Amazon (NASDAQ:AMZN) can maintain its recent strong financial performance when the company reports earnings on Feb. 3, 2021 for Q4 FY 2021.
Analysts expect mixed results in 4Q21. EPS is expected to sink 74.9% Y/Y to $3.54, revenue is forecast to rise 9.6% Y/Y to $137.63B. 

Although revenue is expected to grow, it would mark the slowest pace of growth in at least the past 20 quarters. Amazon (AMZN) has posted rapid earnings and revenue growth over the past year as the COVID-19 pandemic accelerated both the shift to online shopping and corporate demand for cloud computing services.
According to NY Post, Amazon (AMZN) might announce Prime subscription price increase when it reports earnings tomorrow.

Earnings History:

The stock fell 2% on the day following the release of Q3 FY 2021 earnings report in late October amid missing EPS and revenue estimates.
Over the last 1 year, AMZN has beaten EPS estimates 75% of the time and has beaten revenue estimates 100% of the time.

Factors to consider:

Labor supply shortages and increased wage costs: Amazon CEO Andy Jassy in October warned that profitability would again take a hit in the fourth quarter âas the company would manage through labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs
1Q22 Guidance: The company in its Q3 earnings report expected Q4 net sales to be between $130.0 billion and $140.0 billion below analyst estimates of $142.15B consensus. Analyst expects Q1 revenue of $120.73B.

Analyst opinion:


Cleveland Research analyst Scott Bender boost his Q4 net sales growth estimate to up 12%, from 11%, consensus at up 10%, and the company's guidance to be up 4%-12%. Bender has a buy rating ahead of the upcoming earnings report.



BMO Capital analyst Daniel Salmon lowers PT to $3,600 from $4,100 but keeps an Outperform rating on the shares. The analyst is also reducing his FY22 EPS view to $42.99 from $65.04.
Over the last 3 months, EPS estimates have seen 0 upward revisions and 32 downward. Revenue estimates have seen 3 upward revisions and 11 downward.
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