“Apple Inc. plans to report fiscal second-quarter results on Tuesday, after a bruising winter for the stock, which is back down to 2011 levels,” The Associated Press reports. “Apple has yielded its position as the world’s most valuable publicly traded company to Exxon Mobil Corp.”
“Apple is expected to post its first year-over-year earnings decline in 10 years, a big comedown for a company that has been on an incredible tear of innovation and money-making,” AP reports. “Sales are still growing, but its margins are shrinking. That’s both because of the company’s stated strategy of producing the best devices it can, without cost-saving shortcuts, and because it’s undercutting sales of its full-size iPad with the cheaper, lower-margin iPad Mini. In the longer perspective, investors are starting to seize on the fact that the company hasn’t launched a ground-breaking new product like the iPhone or iPad since 2010, the year before CEO Steve Jobs died. They’ve pulled out of the stock this winter, sending the shares down more than 40 percent to levels last seen in 2011.”
AP reports, “Analysts, on average, expect earnings of $10.03 per share on revenue of $42.45 billion, according to FactSet. Apple has said it expects revenue of $41 billion to $43 billion. It had a long tradition of low-balling forecasts, but has signaled that its new forecasts are more realistic. In the same period a year ago, Apple earned $11.6 billion, or $12.30 per share, on $39.2 billion in revenue.”
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