“Apple is positioned to report another quarterly earnings beat when reporting 3Q results on July 21st,” Neil Cybart writes for Above Avalon. “Apple continues to benefit from attractive year-over-year sales comparisons in China. Overall revenue growth is tracking close to 35 percent, with earnings growth exceeding 50 percent.”
“With the iPhone now representing close to 70 percent of Apple’s operating income, the product category has become the single-most important factor driving earnings, and that trend will continue in the near-term,” Cybart writes. “With lingering Apple Watch demand questions, many will use earnings as the first opportunity to back into Watch unit sales.”
Cybart writes, “Apple guidance should be informative, reflecting not only a new iPhone launch, but also an early read on July sales and any impact from ongoing economic turmoil in China.”
Read more in the full article – recommended – here.
MacDailyNews Note: As usual, we expect earnings results after market close, right around 1:30pm PDT / 4:30pm EDT.
We’l bring you the results as soon as they are available and follow that up with live notes from Apple’s conference call. Check our home page around 4:30pm EDT for the results and around 4:45pm EDT for the link to our live coverage.
On April 27, 2015, Apple provided the following guidance for its fiscal 2015 third quarter:
• revenue between $46 billion and $48 billion
• gross margin between 38.5 percent and 39.5 percent
• operating expenses between $5.65 billion and $5.75 billion
• other income/(expense) of $350 million
• tax rate of 26.3 percent