Earnings Preview: Amazon.com And Microsoft Corporation

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Amazon.com, Inc. (NASDAQ:AMZN) is scheduled to release its third-quarter earnings results for the fiscal 2014 while Microsoft Corporation (NASDAQ:MSFT) is set to report its first-quarter, fiscal 2015 financial performance on Thursday, October 23.

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Earnings estimate for Amazon.com

Wall Street analysts estimated that Amazon.com, Inc. (NASDAQ:AMZN) would report losses of $-0.73 per share and $20.9 billion in revenue for the third-quarter based on data compiled by Bloomberg.

During the previous quarter, the e-commerce giant posted losses of $0.27 per share and $19.3 billion in revenue.


Amazon.com, Inc. (NASDAQ:AMZN) expected to deliver third-quarter revenue in the range of $19.7 billion to $21.5 billion or a growth rate of around 15% to 26% from its net sales in the same period last year.

Amazon.com, Inc. (NASDAQ:AMZN) to reporting operating loss between $810 million to $410 million compared with its operating loss of $25 million in the third-quarter of 2013.

Michael Pachter, an analyst at Wedbush said the financial performance of Amazon.com, Inc (NASDAQ:AMZN) is still “unpredictable” citing the reason that its initiatives to improve customer experience could hurt earnings growth. He noted that the Prime Music streaming service appears “uncompetitive,” and costs the company approximately $1.5 billion annually.

Earnings estimate for Microsoft

On the other hand, analysts polled by Bloomberg estimated that Microsoft Corporation (NASDAQ:MSFT) would be able to achieve $0.53 in earnings per share and $22 billion in revenue for the first-quarter of its fiscal 2015.

The software giant reported $0.55 in earnings per share on $23.38 billion in revenue for its fourth-quarter fiscal 2014.

Analysts at Zacks Equity Research believed that the recent restructuring efforts of Microsoft Corporation (NASDAQ:MSFT) helped prevent losses caused by the persistent decline in PC sales worldwide and lower operating expenses. The firm added that its decision to focus on fast-growing segments increased investors’ optimism on the company’s stock.

On the other hand, Trefis expected Microsoft Corporation (NASDAQ:MSFT) report revenue growth at Office division driven by cloud products. The firm emphasized that it would closely monitor the company’s unit sales for devices and consumer hardware segment in its third-quarter earnings results.

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