The holiday season is rapidly approaching, with many consumers ready to get out there and shop. And several companies, including Amazon AMZN and Walmart WMT, could see a nice boost from the period thanks to their robust digital offerings.
Let’s take a closer look at each.
Concerning headline figures in Amazon’s latest quarterly release, the company exceeded both consensus EPS and sales expectations handily. EPS grew 70% year-over-year, whereas sales of $60 billion reflected an 11% climb from the year-ago period.
A big highlight of the results was the AWS results. AWS sales jumped 19% year-over-year to $27.5 billion, matching the same growth pace reported last quarter. The AWS results modestly fell short of our consensus estimate, as shown below.
Image Source: Zacks Investment Research
The company remains bullish about what It’s got in store for customers during the holiday season, kicking off the period with its biggest-ever Prime Big Deal Days and the launch of an all-new Kindle lineup that has broadly exceeded its initial expectations.
Impressively, Online Sales of $61.4 billion came in 3.3% ahead of expectations, snapping a recent streak of negative surprises on the metric.
Image Source: Zacks Investment Research
The company’s earnings outlook remains bullish, with the stock sporting a favorable Zacks Rank #2 (Buy) and enjoying positive earnings estimate revisions post-earnings.
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Walmart’s latest quarterly release pleased investors in a big way, with the company’s digital efforts paving the way for robust results. Concerning headline figures, adjusted EPS jumped 14% higher alongside a 5.5% sales boost, continuing its recent growth trajectory.
Analysts took a bullish stance on the company’s current year outlook following the print, with the $2.47 Zacks Consensus EPS estimate up 6% over the last year and suggesting 12% growth year-over-year.
Image Source: Zacks Investment Research
Notably, eCommerce sales were up 27% globally, with penetration higher across all segments and again confirming recent digital momentum for Walmart. Store-fulfilled pickup/delivery helped lead the robust digital showing, with consumers increasingly finding the service attractive.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
The company upped its FY25 net sales and operating income guidance following the release, helping explain the bullish share reaction post-earnings and the positive earnings estimate revisions.
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