All eyes on Cupertino as Apple reports earnings today – here’s what to watch for

“As the most valuable American company by market capitalization, Apple’s financial results are an event that often has markets on edge,” Anita Balakrishnan writes for CNBC. “But as expectations for the next iPhone overshadow spring sales, the top and bottom line may not top of mind for many on Wall Street.”

“Luckily, Tuesday night’s report promises a wealth of data that could give savvy investors a hint into Apple’s future plan,” Balakrishnan writes. “4 numbers to watch: 1. iPhone sales; 2. Revenue and margin guidance for the fiscal fourth quarter; 3. China revenue; 4. Services revenue.”

Balakrishnan also provides 4 words to look out for:

• Supply/Demand
• HomePod
• Content
• Repatriation

On that last point, Balakrishnan writes, “Apple’s cash pile is well over $250 billion already, and much of that is held overseas. But as European regulators take a harder line against tech companies, President Donald Trump has suggested he might lower taxes for companies that bring money back to the U.S. That means that Apple could potentially have a lot of capital to put to work here on U.S. soil.”

Read more in the full article here.

MacDailyNews Take: As always, guidance is key.

Apple is expected to report $1.57 EPS on revenue of $44.89 billion in the June quarter, according to analysts polled by Thomson Reuters.

On May 2, 2017, Apple provided the following guidance for Q317:
• revenue between $43.5 billion and $45.5 billion
• gross margin between 37.5 percent and 38.5 percent
• operating expenses between $6.6 billion and $6.7 billion
• other income/(expense) of $450 million
• tax rate of 25.5 percent

The company will announce 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 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.

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