What Wall Street expects from Apple’s Q314 earnings today

“When Apple reports its fiscal third-quarter earnings on Tuesday, investors will be looking beyond the numbers and watching to see if the company drops any hints of what and when new products may be in the pipeline,” Cadie Thompson reports for CNBC. “‘Investors will be looking for hints about how soon and how strong and what new market categories Apple may be working on,’ said Alex Gauna, an analyst at JMP Securities. Gauna, who has a ‘market outperform’ rating on the stock with a $135 price target, said that investors will be specifically interested to see if Apple’s CEO Tim Cook drops any news about a possible smartwatch.”

“Along with the company’s push into wearables, investors will also be listening for clues about when the company plans to launch the iPhone 6, said Abhey Lamba, an analyst at Mizuho Securities,” Thompson reports. “‘Most focus will be on the iPhone 6, even though they probably won’t say much about it, investors will be trying to read the tea leaves,’ said Lamba, who has a ‘buy’ rating on the stock with a $95.35 price target.”

“Analysts expect the company to post earnings of $1.23 per share on revenue of $37.98 billion in revenue, according to a Thomson Reuters’ survey of analysts,” Thompson reports. “Strong earnings results from some of Apple’s suppliers, however, may mean the tech giant could post a positive surprise, Gauna said. For example, Skyworks posted 35 percent revenue growth year over year when it reported earnings last week and that could translate to good news for Apple, he said.”

Read more in the full article here.

“The 34 analysts polled by Fortune — 21 professionals and 13 amateurs — expect Apple to easily trump last year’s dismal June quarter,” Philip Elmer-DeWitt reports for Fortune. “They’re calling, on average, for iPhone unit sales up 14.5%, revenues up 8.5% and earnings up 18.1% year over year.”

Apple Q314 analysts' expectations

Read more in the full article here.

[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]

12 Comments

    1. Exactly.

      They’ll say:
      “No holographic display”
      “No 7 inch phone”
      “No perpetual motion battery”
      “No energy to transmogrifer matter creator”

      Apple is doomed, sell, sell, sell.

      Yep sounds like an analyst.

      1. Think, you left out…

        “No matter/antimatter or zero point energy power sources.” (We all need to never plug in anything again)
        “No teleportation devices” (What comes after Facetime everywhere with Connection. Don’t just talk to people as if Face-to-face. Actually *BE* Face-to-face by your iTransport taking you there instantly.)
        “No neural network interfaces” (GUIs are so old hat. We need a direct brain connection.)
        “No YottaFLOP processor in that iWatch!” (You need to do real-time cosmology calculations on your watch, don’t you?)

        Clearly, if Apple can’t ship these things in the next few weeks, Apple is truly doomed. All Apple employees need to get their resumes distributed in the next few hours before Apple has to layoff 90+% of its staff!!!!

        /s

    1. Apple is trading so flat today that it’s almost impossible to get any clue as to how earnings will turn out. Investors must be sitting on the fence. If it were Google or Amazon, investors would be sticking their necks out to buy into earnings. That’s a confidence move that Apple doesn’t appear to invoke. Too many conflicting views are being tossed about. I thought the 7 for 1 split might change things, but apparently not.

      1. Well let’s be fair about this. The stock has had a good run up since the last earnings release and stock split announcement.
        Here’s hoping that a good performance will boost the stock. My guess though is that it will drop today and build back up in the fall.

  1. Apple receives far too much coverage for earnings. Most companies’ earnings come and go and you’d hardly ever hear about them. I barely knew when Google’s earnings were coming because I saw so little about analyst handicapping of the company. Forget ExxonMobil. I never see anything about the company during earnings. It’s like it never fluctuates unless some hurricane wipes out drilling rigs or some tanker takes a big leak.

    There’s too much focus on Apple and device sales in a single quarter and I really don’t know what it proves because the company is so damn seasonal and should be measured by a full years’ sales.

  2. The press is addicted to Apple because Apple has earned so much money every single quarter more than any other companies combined. Miss.Apple is always in the spotlight.

    1. Apple would appear to be doing a lot for the U.S. economy so I don’t see why so many Americans would be down on the company. It’s almost like they’re biting the hand that feeds them. Why would Wall Street be happier to hear that Microsoft is laying off thousands of employees? You’d figure they’d want to back a company that’s insanely successful. Maybe I’m missing something, though. It’s probably better for investors to have a company’s share price simply roller-coasting up and down, but why not pick Google or Amazon for that?

      1. Because most of the investor class cares nothing about the company, only their quarterly return. Amazon, Microsoft, & Google have business models that don’t require innovation, only guaranteed sales into the future. Apple actually creates stuff that is very dependent upon customer buy-in, so a miss tanks revenues and investor returns.

        Samsung Electronics makes stuff, but only by copying successful ideas from other companies. That’s a much safer, and cheaper, approach to company growth, but is dependent on the Apples of the world coming out with new stuff that’s worth copying. Samsung’s returns will go up again just after they can copy the next blockbuster product. Just watch.

  3. Ignore the noise. Ride out any bumps. And no, Apple won’t tip its hand. That does not happen on conference calls, much as the media and analysts always report that the company will.

    Insanity is doing the same thing over and over again, and expecting different results.

    This IS CNBC we’re talking about, after all.

    Instead, look at the projections, cash flow growth and return on equity as guidelines. Sit out the hysteria and look at the trends of how Apple is faring. And by all means, be patient. If you are an investor in anything or any company, Apple included, patience is essential.

    Trees don’t grow overnight, and shouting at a tree, demanding that it grow more quickly, has proven not to work. Now, if only Wall Street and the punditocracy would learn that, the world might be a more serene place on which to live.

    My advice: don’t watch CNBC. Go outside and enjoy a summer’s day. Smell some flowers and listen to the birds. It’s time better spent than dwelling on CNBC blather and analyst proclamations. Meanwhile your trees (investments) will continue their trajectory. In a few years, you’ll see what the pundits don’t and won’t.

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