“Apple is scheduled to announce its first quarter 2018 earnings on Feb. 1,” Daniel Howley reports for Yahoo Finance. “And while the results for the period that ended Dec. 31 should prove positive, it’s the iPhone maker’s guidance estimates for the second quarter that has Wall Street on tenterhooks.”
“‘We expect December results to easily beat guidance and consensus,’ UBS analyst Steven Milunovich wrote in his earnings preview. Milunovich expects to see revenue from the quarter to hit $89.3 billion, or about $2.3 billion more than street estimates,” Howley reports. “Bernstein analyst Toni Sacconaghi believes Apple will report total iPhone sales of 51 million to 57 million units in the second quarter. The street estimate currently calls for 61 million units.”
“It’s also worth pointing out that Apple’s services revenue is continuing to grow, despite slowing demand for smartphones overall,” Howley reports. “Apple’s long-term plan clearly involves turning services such as Apple Music and iCloud into a major chunk of its business and the company is already on its way to accomplishing that goal.”
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MacDailyNews Note: On November 2, 2017, Apple provided the following guidance for Q118:
• revenue between $84 billion and $87 billion
• gross margin between 38 percent and 38.5 percent
• operating expenses between $7.65 billion and $7.75 billion
• other income/(expense) of $600 million
• tax rate of 25.5 percentSEE ALSO:
Apple to release Q118 earnings, webcast live conference call on February 1st – January 8, 2018