“Apple Inc. is expected to report earnings at the high end of fourth-quarter guidance after the market closes Tuesday, buoyed by the iPhone 7 launch and a flurry of new customers switching from Android in the aftermath of Samsung Electronics’ exploding Note 7 saga,” Jennifer Booton reports for MarketWatch.
MacDailyNews Take: While we’d much prefer that people recognized a knockoff for what it is and shunned it immediately on moral grounds — instead of buying fake Coke and pretending to enjoy it as much as real Coke only to turn on the producer once it started poisoning them — at this point, we’ll take whatever justice Karma chooses to mete out.
“While the iPhone remains Apple’s biggest top-line contributor by far, services, such as Apple Care and Apple Music, surpassed the Mac earlier this year, and are expected to surpass $6 billion in revenue for the first time this quarter,” Booton reports. “Analysts expect Apple to report earnings per share of $1.66, down from $1.96 in the year-earlier period.. [and] revenue of $47 billion, according to FactSet, down from $51.5 billion in the same period last year.”
“This will be the first quarter that reflects the new iPhone 7 family of phones, though only the first two weeks of sales will be reflected. Analysts expect Apple to ship 45 million phones during the quarter, down from 48 million in the year-earlier period, according to FactSet,” Booton reports. “Bernstein analyst Toni Sacconaghi said all eyes will be on Apple’s guidance for the holidays, with many analysts citing an extra week in the fiscal first quarter as a potential catalyst for iPhone sales. ‘The key – and nearly singular – question for investors is fiscal first-quarter 2017 guidance, and what that signals about strength of the iPhone 7 cycle,’ he said.”
Read more in the full article here.
MacDailyNews Take: As usual, and more so for Apple’s fiscal first quarter (holiday), guidance is the key.
Apple will announce Q416 results that day after market close, typically right around 1:30pm PDT / 4:30pm EDT. As always, we’ll bring your the results as soon as they are available (simply check our home page at 4:30pm EDT on October 25th).
The company’s conference call to discuss Q416 results is scheduled a half an hour later, at 2pm PDT / 5pm EDT today. We plan to cover the conference call with live notes as usual. That link will appear on our home page around 4:45pm EDT today.
Previewing Apple’s Q416 earnings – October 24, 2016
Apple Q4 earnings, due October 25th, expected to reveal first annual revenue decline since 2001 – October 24, 2016
Apple to release Q416 earnings, webcast live conference call on October 25th – October 21, 2016