“Technology giants in the S&P 500 are expected to turn in their worst earnings drop since the recession, dragged down by falling sales of the Apple iPhone,” Jed Graham reports for Investor’s Business Daily.
“Overall, S&P 500 earnings in the second quarter will fall 4.7% vs. a year earlier, the fourth straight quarterly decline, according to analyst estimates compiled by Thomson Reuters,” Graham reports. “Revenues are expected to dip 0.9%, the sixth straight quarterly slide.”
“Technology earnings are expected to decline 6% from a year earlier, worse than the 4% fall in Q1, according to Thomson Reuters. Tech revenue should slide 4.8%. But excluding Apple, tech profits should dip just 1%, with revenue off 2.5%.,” Graham reports. “Apple’s earnings per share are seen falling 24.9%, as revenue tumbles $7.6 billion from a year earlier to $42 billion. Apple revenue fell 13% in the prior quarter, the first drop in more than decade.”
Read more in the full article here.
MacDailyNews Take: We’ll see how close the analysts come to Apple’s actual Q316 results when Apple reports after market close on July 26th.
SEE ALSO:
iPhone unit sales estimates have Apple analysts at odds – July 7, 2016
iPhone SE could be a big surprise… 😉
Why would anyone buy a new iPhone when new models are coming out this fall. Happens every year and these analyst clowns just don’t get it.
You have to be a rabid fanboy to pay that much attention to it.
And what sort of person is it that is hanging around here just so they can make comments like that?
I guess that makes greggthurman a rabid fanboy fanboy.
Last years spike due to larger phones release throws everything off and causes undue panic.. Even if you accept the analyts prediction and given all the head winds.. Once normalized for 2015 anomaly.. Things dont look that bad .. But yet the PE has been hammered .
Apple eps… June 2013: 1.07, rev 35 billion , pe 11
………………..June 2014: 1.29, rev 37 billion. PE14
….. ……………june 2015: 1.86, rev 49 billion <<<< 2015 spike PE16
Expectation june 2016: 1.39, rev 42 billion …PE10
Normalized .. Rev of 42B falls on the linear growth line.. And does not warant the panic and negatve narrative To justify such low PE..
Imo apple should be trading in the range of 13 to 15PE … 110 to 125 range…
But Panic and negative narrative are putting a damper on things… And all becouse of 2015 spike… Not low performance in general.
Ignore EPS. It is a metric used to compare the quality of earnings vs other firms, but has been bastardized over the years to be a measure of the Company’s financial health.
The metric to follow is Net Income. That isn’t impacted by the wandering number of shares outstanding.
Using Net Income as a measure of Apple’s financial performance you’ll find that it has been in decline, as a percent of revenue, since 2012.
There have been two primary drivers causing that decline, #1 /greater R&D expense and, #2/ FX headwinds.
There is little Apple can do to mitigate #2, and you wouldn’t want Apple to reduce R&D expenditures, as that is the future of Apple.
Forget EPS???…
Apple net income ..
March 31, 2016 10.52B
Dec. 31, 2015 18.36B
Sept. 30, 2015. 11.12B
June 30, 2015. 10.68B
March 31, 2015. 13.57B
Dec. 31, 2014. 18.02B
Sept. 30, 2014. 8.467B
June 30, 2014. 7.748B
March 31, 2014. 10.22B
Dec. 31, 2013. 13.07B
Sept. 30, 2013. 7.512B
June 30, 2013. 6.90B
March 31, 2013. 9.547B
Dec. 31, 2012. 13.08B
Sept. 30, 2012. 8.223B
June 30, 2012. 8.824B
March 31, 2012. 11.62B
Dec. 31, 2011. 13.06B
Sept. 30, 2011. 6.623B
June 30, 2011. 7.308B
March 31, 2011. 5.987B
Dec. 31, 2010. 6.004B
Sept. 30, 2010. 4.308B
June 30, 2010. 3.253B
March 31, 2010. 3.074B
Dec. 31, 2009. 3.378B
Sept. 30, 2009. 2.532B
June 30, 2009. 1.828B
March 31, 2009. 1.62B.
Dec. 31, 2008. 2.255B
Sept. 30, 2008. 2.421B
June 30, 2008. 1.072B
March 31, 2008. 1.045B
Dec. 31, 2007. 1.581B
Sept. 30, 2007. 903.00M
June 30, 2007. 818.00M
March 31, 2007. 770.00M
Dec. 31, 2006. 1.004B
Sept. 30, 2006. 542.00M
God analysis, yojim o007. I agree that the spike is fouling up expectations. It will all work itself out.
Headline should read, “Get Ready for the Worst Tech Analysys Prediction Errors Since 2009!” 🖖😀⌚️
A one’ year’s spike in iPhone sales really messes everything up for Apple shareholders. I suppose once a new bar is set, then unless the new bar is cleared, each successive jump that doesn’t clear the bar is considered a huge failure. I guess I should be content that Apple is actually doing financially well as a company and the share price has simply disconnected. However, I don’t see any future change in Apple’s current valuation which I do consider disappointing.
I really don’t understand how Microsoft now has a P/E of nearly 40X earnings. That’s just crazy after taking charges and basically destroying its mobile business opportunities. There’s no guarantee consumers are going to be willing to pay for Windows 10, either. It’s really confounding to me how Microsoft suddenly became so valuable over the last couple of years. Is Azure cloud services really that great a business?
Microsoft’s valuation has a lot of analyst wishful thinking baked into it. They have spent years, even decades, following MSFT and they don’t want to see it go down. So they keep pumping it even though M$ has had failure after failure in mobile phones and the mobile market, in general. Even some of its infrequent successes, such as the XBox, are headed down, not up. And M$ has more and more to fear globally as countries move away from Windows.
Eventually MSFT will fall apart in a big war. I hop I am in a position o short it at the right time.