Ahead of Amazon's earning report after Thursday's bell, analysts believe the company's earnings report will show some strain.

Shares of the Kindle maker have surged 60 percent since the company's last quarterly report in mid-January. At the time, the online retail giant surprised Wall Street with a surge in earnings during the holiday shopping season, as many predicted sales to be low as there was a higher offering of discounted products in the market.

Analysts expect Amazon's earnings per share to slip to 31 cents from 34 cents in the same period last year, according to the analyst estimates by FactSet Research. Operating income is expected to decline as well.

While we expect that Amazon grew market share during the quarter, we further expect that the company's gross margin continued to deteriorate, wrote analyst Dan Geiman of McAdams Wright Ragen in a note to clients.

Revenue is expected to rise to $4.75 billion from $4.13 billion in the same period a year ago, according to forecasts.

Jefferies analyst Youssef Squali said in a research note he expects Amazon to come in at the high end of expectations, looking for 33 cents on 44.81 billion. He' put a hold and $60 target on shares.