“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.
SEE ALSO:
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
The stock is set for a drop given that it has had a pretty big run up in the last few months. Typically the market will cash in profits.
On the positive side, the incendiary Samsung problem has given Apple a much needed boost plus it is obvious that the iP7 is selling well. AppleWatch and iPad demand will be important and it looks like supply of the AW is still low (my wife just ordered an AW2 and it has a 4 week delivery date).
Checked Website and the AW v2 is showing 3-4 weeks back order and in-store pickup starting Dec 1…..
Apple hating media says NOBODY buying the AW……so…..who is not telling the real story…..?!!
The media is rigged as Donald Trump blamed. There is no honest journalism now a day, they all go to vacation in Hawaii with one hand holding Pina Colada. 🙂
With your best guess, guys. Do you think Apple’s going to be a nice surprised tonight?.
How much of these rip offs, I mean earnings were a donation to Hitlary Clinton from Tim Cook, and why don’t we hear Cook praising her and giving her OUR money anymore, Because he does it silently now, google it.
Do we think the Mac event this week will counter the stock drop later today after earnings are reported?
That will depend on what is released. If it is just MacBooks then maybe not. I doubt that desktops will be updated.
I have a sneaky feeling that Apple are going to release the first A-series Mac. Best bet is a super lightweight laptop with 24h battery life.
I honestly don’t know if we will see a decline following the Q4 earnings report. A decline often occurs, but Apple could surprise to the upside in Q4 revenue/earnings and Q1 guidance compared to expectations. Last quarter Apple basically reset irrational expectations.
Will fear or greed rule Wall Street this week? Trick question, since it is often both mixed together!