Apple’s earnings loom: We’ve heard this story before

“On Wednesday afternoon, everyone will stop for a minute when Apple (AAPL) reports its fiscal second quarter results,” Bill Maurer writes for Seeking Alpha. “The technology giant is not expected to report a great quarter, with the potential for revenues to decline over last year’s period. Earnings per share are expected to increase very slightly, thanks to the buyback, with net income probably decreasing. This will be an interesting report to dissect thanks to a key launch during the quarter, and for what may come in terms of a capital return update.”

“When it comes to the iPhone, analysts are expecting a slight rise in sales. The average forecast calls for about 2% unit growth over Q2 last year, or an average of about 38.2 million sales,” Maurer writes. “I am currently looking for 38.85 million sales, about a 3.8% year-over-year rise.”

“Should Apple issue light guidance for Q3, which I think is totally possible, investors will definitely be looking for more capital returns. I think a 15% raise to the dividend and perhaps a $20 billion increase to the buyback would be a good start,” Maurer writes. “Again, though, the timing of the buyback will be key. Apple could issue a trillion-dollar buyback, but if it is over 200 years, it won’t be that powerful. It will be important to listen to the timing of the buyback, perhaps even more important than the dollar value.”

Read more in the full article here.


  1. Wouldn’t it be sweet if TC pulled a ” One more thing” at the end of the earnings call?.

    That would mess with the usual stock price drop!.

    Not likely, but who knows.

  2. China Mobile will be a big boost to iPhone sales. It’s not just about increasing volume but also increasing the number of carriers, countries that iPhones are sold in as well as taking the high end revenue from the competitors.
    I do wish the product releases were more spread out over the year. I understand that the Xmas quarter is a big deal but it puts all the eggs in one basket and if there are production issues it can create a lot of stress on the business.
    Also more frequent product announcements helped keep Apple in the news for good reasons and support the idea that Apple were the best at innovation.

  3. paitence paddewan,

    if you can wait for riches, they will be delivered.

    and have depth,

    if you can absorb a tsunami you will be rewarded with the riches of the ocean

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