“On Tuesday afternoon, we’ll get earnings results from technology giant Apple,” Bill Maurer writes for Seeking Alpha. “The smartphone still represents about two-thirds of Apple’s revenues, so it obviously is the most important item in the quarter. Current analyst expectations call for 52.2 million sales in fiscal Q2, with estimates mostly in the 50-55 million range.”

“If the number comes in around 50-52 million, it likely means consumers are starting to hold back purchases, waiting to see what’s coming next,” Maurer writes. “However, anything in the 53-55 million range would be really positive, suggesting the smartphone is still doing quite well and perhaps still taking advantage of Samsung’s troubles.”

“The one really bright spot for Apple is its services business, which topped $25 billion in trailing twelve-month revenues during the most recently reported quarter,” Maurer writes. “The one item with the highest risk for disappointment is likely fiscal Q3 guidance (the June quarter). In last year’s period, the iPhone SE launched, and this year Apple only updated the device with some different storage options. Additionally, iPad changes this year were not that impressive, and lower prices on some models means more unit sales will be needed.”

“Apple comes into earnings near all-time highs, so expectations will definitely be inflated,” Maurer writes. “However, I’m sure not every investor will be satisfied with this week’s report, whether it be due to guidance, not enough of a dividend raise, etc.”

Read more in the full article here.

MacDailyNews Take: The lack of iPad updates (beyond the entry level) was perplexing enough for the Christmas quarter; at this point, it’s just inexplicable.

On January 31, 2017, Apple provided the following guidance for Q217:

• revenue between $51.5 billion and $53.5 billion
• gross margin between 38 percent and 39 percent
• operating expenses between $6.5 billion and $6.6 billion
• other income/(expense) of $400 million
• tax rate of 26 percent

In Q216, Apple posted quarterly revenue of $50.6 billion. Gross margin was 39.4 percent. So, obviously, Apple expects growth to continue.

As usual, guidance is key.

Also as usual, we plan to bring you Apple’s Q217 results as soon as they’re released, right around 4:30pm on May 2nd – just check our home page. Following that, we also plan to cover Apple’s Q217 conference call with live notes starting at 5pm that day.

SEE ALSO:
Apple’s Q217 earnings: Will growth continue? – April 24, 2017
Apple’s Q217 earnings: Guidance is key – April 12, 2017
What to expect from Apple’s Q2 2017 earnings call on May 2 – April 27, 2017
Apple’s Q217 earnings: Will growth continue? – April 24, 2017