What the analysts expect from Apple’s Q116 earnings report today

“Apple tapped into a crucial market when it unveiled its bigger-screen 6 and 6 Plus phones in 2014, grabbing the attention of Asian customers,” Anya George Tharakan and Supantha Mukherjee report for Reuters. “‘Apple has become a victim of their own success as the blockbuster iPhone 6 product cycle was hard to replicate as many customers are either buying an older, cheaper iPhone 6 or waiting for the iPhone 7,’ FBR Capital Markets analyst Daniel Ives said.”

“Analysts estimate Apple sold 75.5 million iPhones in the October-December quarter, a 1.3 percent increase from a year earlier, according to research firm FactSet StreetAccount,” Tharakan and Mukherjee report. “This compares with a nearly 46 percent year-over-year jump in iPhone sales in the first quarter of 2015. To make matters worse, Apple is expected to forecast a drop in iPhone sales for the March quarter – the first time that sales will fall since the iPhone was launched in 2007.”

“Apple is expected to sell 54.6 million iPhones in the March 2016 quarter, according to FactSet,” Tharakan and Mukherjee report. “The company sold 61.2 million iPhones between January and March, 2015 – a 40 percent year-over-year increase.”

Read more in the full article here.

“Apple’s fiscal first quarter of 2016 is expected to net the company $18.22 billion in profit on $76.67 billion in revenue, compared to the $18 billion profit on $74.6 billion in revenue made during the same period last year, according to consensus estimates from analysts polled by Thomson Reuters,” Luke Villapaz reports for The International Business Times. “Earnings per share are expected to come in at $3.23, up from $3.06 last year.”

MacDailyNews Note: The Q116 whisper number for Apple stands at $3.40 per share.

“Mac sales are expected to come in at 5.66 million units, up from 5.52 million units sold last year, according to IDC estimates. That’s despite overall market trends where PC sales for many manufacturers have fallen on a year-over-year basis,” Villapaz reports. “Even with the launch of the 12.9-inch iPad Pro in November, Apple’s tablet line is expected to continue its decline with an estimated 18 million units sold, down from 21.4 million units a year prior, according to an FBR Capital Markets estimate.”

Villapaz reports, “Analysts will especially be looking closely at Apple’s revenue projections for the March quarter.”

Read more in the full article here.

MacDailyNews Note: As usual, we expect earnings results after market close, right around 1:30pm PDT / 4:30pm EDT today, January 26th.

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.

On October 27, 2015, Apple provided the following guidance for their fiscal 2016 first quarter:

• revenue between $75.5 billion and $77.5 billion
• gross margin between 39 percent and 40 percent
• operating expenses between $6.3 billion and $6.4 billion
• other income/(expense) of $400 million
• tax rate of 26.2 percent

SEE ALSO:
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

3 Comments

  1. ……and as we know the Bears will put a gloom and doom spin on whatever the results are. Increased earnings, increased dividends and increased buyback will all raise the share price eventually. Just need to be patient.

  2. No matter what Apple reports on manufacturing and sales, Wall Street will continue to piss on them and Apple Stock (not Apple) will drop right after the report. This is standard predictable practice by Wall Street.

  3. So let me get this right. Apple had the biggest quarter in corporate history a year ago. They are being predicted to beat it this quarter, and their stock will lose value. They make more on a more diversified sales line-up and they are penalized. Wow!

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