Can Apple save the day when it reports earnings?

“With the stock market continuing its slide, could the world’s biggest company provide a spark?” Kristen Scholer asks for The Wall Street Journal. “Apple Inc. reports calendar fourth-quarter earnings after the close Tuesday. The tech giant is expected to book record income of $18.1 billion in the final three months of the year on revenue of $76.6 billion, according to analysts surveyed by Thomson Reuters. ‘[Apple is] going to make or break it for the index to some degree,’ said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. ‘They are going to be the big news item for the week.'”

“One of the biggest challenges facing Apple is China. Last year it became Apple’s biggest market after the Americas and soaring sales in China have helped make Apple the world’s most profitable and valuable company. The question now for Apple and its investors: How to keep growing in China, the world’s largest smartphone market, without the red-hot economy,” Scholer reports. “For that reason, Apple’s earnings should offer insight on the health of the global economy.”

Scholer reports, “The company is expected to be the biggest contributor to the S&P 500’s operating earnings in the fourth quarter, according to Mr. Silverblatt. If the company can surprise to the upside, that should help the stock and the overall S&P 500 as Apple has the largest weighting in the index at 3.4%.”

Read more in the full article here.

MacDailyNews Take: Right around 1:30pm PDT / 4:30pm EDT today, we’ll 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. You can listen to Apple’s conference call live via this link later today here.

SEE ALSO:
What the analysts expect from Apple’s Q116 earnings report today – January 26, 2016
What to look for in Apple’s earnings report tomorrow – January 25, 2016
Apple to release Q116 earnings, webcast live conference call on January 26th – January 22, 2016

6 Comments

  1. Answer to the question: No. It is not in Apple’s DNA to save Wall Street. It has never been in Wall Street’s DNA to be nice to Apple. That won’t change until Apple agrees to allow the intelligence services of the world complete access to all devices.

  2. Q. With the stock market continuing its slide, could the world’s biggest company provide a spark?

    A. No.

    If “[Apple is] going to make or break it for the index to some degree,” then the index is DOOOOOMED. (I’ve always wanted to type that).

  3. They made everybody look stupid last quarter and nothing positive happened…who would expect it if they did it again?
    Short term AAPL holders care about only themselves and their money…nothing else. Jobs new this and ran Apple like he knew this.

  4. Oh, no ! China’s growth is only 4 to 5 % !

    If you look at a graph of long-term GDP growth in the US since 1947 (it is a quick online lookup: http://www.tradingeconomics.com/united-states/gdp-growth), visual inspection suggests an overall average growth rate of about 4 to 5%. (The highest growth was +16.9%, the lowest growth was -10%.) I would guess the same is true of Europe, although it could be a little lower than the US. The point is simply that 4 to 5% growth is really quite respectable.

    And anyone who knows much about developing economies will tell you that early rapid growth is relatively easy, and then it must taper. In fact, it is good when growth tapers, because it is one indication the economy is maturing.

    In any event, China’s 1 billion population contains 3 distinct groups: the wealthy, a rapidly emerging middle class, and the poor. Demand for Apple products may mostly come from the wealthy and middle classes. A GDP growth of “only” 4-5% will not likely greatly affect the lifestyle of these groups. And the poor were never likely to buy Apple products. So I do not see why any analyst worth his or her salt is freaking out about China’s GDP growth of 4 to 5 %.

    1. How many companies can have double-digit growth for years and years? I’m sure Apple is no exception. However, I’m willing to bet Apple’s growth is definitely respectable compared to 95% of the companies in the stock market. To make the company seem as though it’s failing is just crazy. Wall Street can’t compare every company to F.A.N.G. and consider the companies not up to those standards as failing. There’s absolutely nothing wrong with a steady 4% to 5% growth per year. Only the very greedy will say otherwise. Apparently they don’t live in the real world where only 2% earnings growth is a blessing for most working stiffs.

  5. I don’t get it. Microsoft reports earnings this week and I can’t find anything about Microsoft while everyone and his mother has something to say about Apple and its failings for days and days leading up to earnings call. Why is there so much emphasis on Apple’s faults and almost nothing on Microsoft? I don’t see anything about eBay either as they’re going to report earnings this week. I personally don’t think it’s that great for Apple to always be the center of attention. It always ends up hurting Apple shareholders. I sure don’t see how it’s in America’s best interest to try to make their top company seem like a failing business. Absolutely stupid. Apple is certainly not struggling like Wal-Mart, Macys or Sears.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.