“On Tuesday afternoon, we’ll get earnings results from technology giant Apple,” Bill Maurer writes for Seeking Alpha. “The smartphone still represents about two-thirds of Apple’s revenues, so it obviously is the most important item in the quarter. Current analyst expectations call for 52.2 million sales in fiscal Q2, with estimates mostly in the 50-55 million range.”
“If the number comes in around 50-52 million, it likely means consumers are starting to hold back purchases, waiting to see what’s coming next,” Maurer writes. “However, anything in the 53-55 million range would be really positive, suggesting the smartphone is still doing quite well and perhaps still taking advantage of Samsung’s troubles.”
“The one really bright spot for Apple is its services business, which topped $25 billion in trailing twelve-month revenues during the most recently reported quarter,” Maurer writes. “The one item with the highest risk for disappointment is likely fiscal Q3 guidance (the June quarter). In last year’s period, the iPhone SE launched, and this year Apple only updated the device with some different storage options. Additionally, iPad changes this year were not that impressive, and lower prices on some models means more unit sales will be needed.”
“Apple comes into earnings near all-time highs, so expectations will definitely be inflated,” Maurer writes. “However, I’m sure not every investor will be satisfied with this week’s report, whether it be due to guidance, not enough of a dividend raise, etc.”
Read more in the full article here.
MacDailyNews Take: The lack of iPad updates (beyond the entry level) was perplexing enough for the Christmas quarter; at this point, it’s just inexplicable.
On January 31, 2017, Apple provided the following guidance for Q217:
• revenue between $51.5 billion and $53.5 billion
• gross margin between 38 percent and 39 percent
• operating expenses between $6.5 billion and $6.6 billion
• other income/(expense) of $400 million
• tax rate of 26 percentIn Q216, Apple posted quarterly revenue of $50.6 billion. Gross margin was 39.4 percent. So, obviously, Apple expects growth to continue.
As usual, guidance is key.
Also as usual, we plan to bring you Apple’s Q217 results as soon as they’re released, right around 4:30pm on May 2nd – just check our home page. Following that, we also plan to cover Apple’s Q217 conference call with live notes starting at 5pm that day.
SEE ALSO:
Apple’s Q217 earnings: Will growth continue? – April 24, 2017
Apple’s Q217 earnings: Guidance is key – April 12, 2017
What to expect from Apple’s Q2 2017 earnings call on May 2 – April 27, 2017
Apple’s Q217 earnings: Will growth continue? – April 24, 2017
Are we SURE the Apple executive team hasn’t gone on a very long snoozerama siesta? Another quarter will pass by with poorer Mac sales than had to be with several more unrealized Mac-sales quarters yet to come.
Seriously? Do you understand the difference between satisfying everyone and running a successful company. You must not own any AAPL stock, because it has been on fire and is earning quite a bit for its investors.
When you think about a company that size not having oversight on it’s ENTIRE product line or have the systems in place to make sure every hardware & software segment is firing on all cylinders, there is NO excuse and something is seriously wrong. That’s the job by Jobs and if they can’t handle it they shouldn’t be doing it.
Apple stock holder since 2000 and imagine the money to be made if Macs were more properly upgraded, promoted and advertised? You will never find a more previous pro-Apple guy than me. I used to be called on it defending Apple executives, especially Tim. But everyone has their breaking point however, especially if it effects you negatively for years on end. I am really disgusted with them and their ignorance of some of the markets they purport to support and develop for.
With 50 Billion in the bank, Apple has stopped needing Wall St. investors.
It’s time it reignited its dedication to reputation which, as someone said, is waining with its focus on profits to please its investors. How about pleasing users, you know, people how actually hand Apple money instead of investors who take money from Apple, you know, like leeches.
Watch as Apple transforms itself from an innovative agile company that delights users into a cash hoarding industry gorilla intent only on pleasing wall street short-term profit goals.
When you don’t know how to earn money with world class products and services, then you buy back company stock. This is a proven signal of stupid management.
It’s a historical signifier of when a corporation is hiding a fundamental weakness. In the case of Apple, it’s a vision that inspires end users rather than attracting disloyal Wall St. clients who see Apple only in terms of money. The world needs less and less of these privileged free market capitalists which Jobs absolutely did not cater to. Cook does. The first instance was when he caw towed to bloodsucker David Einhorm of Green Light Capital hedge fund who had no interest in Apple products themselves except in how much their return on investment provided. Einhorn demanded that the Apple ” gives more of its $137 (2012) billion cash pile to investors. And Gamco Investors portfolio manager Larry Haverty suggested that Apple investors may sue the company if it continues to refrain from returning more cash to shareholders.”
Cook caved and that’s about when he went full steam to reward their disloyalty.
There’s always this huge question mark about Apple meeting revenue expectations every stinking quarter while companies like Amazon, Facebook and Alphabet are growing like weeds. Only Apple can’t find a growth solution.
Wall Street believes Apple has run out of gas unlike the FANG stocks, Microsoft or Tesla. That’s what Wall Street thinks of Apple. A company that has $250B in reserve cash minus debt. It doesn’t say very much for Apple and Tim Cook. I think that’s very, very disappointing. It pains me to see Amazon with a P/E 10X higher than Apple considering all the profits Apple makes and what it could do with all that reserve cash. Wall Street is betting on Amazon to win and Apple to lose. The company with the largest market cap is seen as a 98 lb. weakling waiting to get sand kicked in its face. Apple would seem to have so much potential for growth but I suppose I’m the only one who sees it that way.
Oh, well. I’m not expecting any share price gains upon quarterly earnings, so I’ll just take the increased dividends I’m expecting to hear Apple announce.