“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.”
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