“When Apple Inc. reports quarterly results Tuesday, investors will be looking for new clues about the health of consumer spending,” Yukari Iwatani Kane reports for The Wall Street Journal.
“Apple has seemed relatively unaffected by the slowdown so far, which hit business spending on technology first. The company mainly hawks its Macintosh personal computers, iPods and iPhones to consumers, and demand is believed to have held up for most of the quarter that ended in September,” Kane reports. “But consumer confidence has been shaken as the financial crisis has worsened, and the effects could show up in Apple’s projections for the current quarter, ending in December.”
“For its fiscal fourth quarter, ended in September, Apple’s results may reflect a boost from the introduction in July of a new iPhone that connects to the Internet at faster speeds,” Kane reports. “And sales of Macintosh computers — the company’s biggest contributor to revenue — likely benefited from back-to-school purchases… But Wall Street will be watching closely for any sign of deterioration in the Cupertino, Calif., company’s fourth-quarter financials, as well as what the company says about the fiscal first quarter.”
Kane reports, “Analysts on average expect Apple to post profit for the fourth quarter of $1.11 a share, up from $1.01 in the year-earlier period, with revenue rising nearly 30% to $8.05 billion. For the current quarter, they predict earnings to decline to $1.66 a share from $1.76 a year earlier, with sales increasing 10% to $10.6 billion.”
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MacDailyNews Note: Peter Oppenheimer, Apple’s CFO, has provided guidance of “about $7.8 billion and earnings per diluted share of about $1.00.”