A day before Amazon’s second-quarter earnings release, Credit Suisse lowered its earnings estimate because of the e-commerce giant’s roll-out of one-day prime.
The firm lowered Amazon’s full-year 2019 earnings per share estimate to $38.87 from the previous estimate of $41.14, citing greater shipping costs as Amazon expands its one-day prime offering.
“We lower our operating income forecast for 2H19/2020 as we expect Amazon to underwrite faster Prime shipping across a greater selection of products, with a rationale consistent with past practice – to place greater distance between its consumer value proposition vs its competitors,” said Credit Suisse research analyst Stephen Ju in a note to clients Wednesday.
