Wall Street expects Apple to report record quarterly revenue later today

“Apple Inc. is scheduled to report results for its fiscal first quarter, which ended Dec. 30, after the market closes Thursday,” Tripp Mickle reports for The Wall Street Journal. ” Earnings of $3.86 a share is the consensus of analysts surveyed by Thomson Reuters, compared with $3.36 a share a year ago.”

“Revenue of $87.06 billion is expected by analysts, compared with $78.4 billion reported a year earlier,” Mickle reports. “In November, Apple said it expected revenue to be between $84 billion and $87 billion in the quarter.”

“Apple is projected to report a 1.5% increase in iPhone shipments, according to analysts surveyed by FactSet, but the $1,000 iPhone X, released on Nov. 3, is expected to lift the average selling price of the device 9% to $755. Those higher prices are expected to lift iPhone revenue 10% to $60 billion in the period.,” Mickle reports. “Expect analysts to ask for more clarity on Apple’s plans now that it no longer needs to hold cash overseas to avoid paying higher U.S. taxes. Also, look for the company to update its new effective tax rate. Morgan Stanley expects Apple to benefit from a lower tax rate of approximately 15.9% due to tax reform, adding $1.13 to its current fiscal-year earnings per share.”

Read more in the full article here.

MacDailyNews Notee: 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 percent

SEE ALSO:
Apple to release Q118 earnings, webcast live conference call on February 1st – January 8, 2018

8 Comments

  1. $87B in revenue and Apple stock drops like an anvil. Tesla can burn cash through cash like it was a steam locomotive and the stock value continues to climb. This is the type of stock market I’ll never be able to wrap my head around. How a company can be sitting on a mountain of cash and continues to lose value doesn’t quite figure in how I learned to balance my personal income financial records? Yes, I realize Wall Street hates companies with spare money just sitting around and collecting dust, but that’s also weird to me.

    Best of luck to fellow Apple shareholders but I’m sure Apple’s guidance is going to be quite conservative and without a written guarantee of higher iPhone sales, loyal Apple shareholders are going to be slaughtered after Tim Cook got himself a fat raise. The remaining FANG stocks will be praised and get greatly raised price targets. I suppose only Apple will falter out of the bunch. Did Warren Buffett mistakenly pick another IBM?

  2. The real question is; can Mr. Cook tend to normal/standard business and release iterations on time and release innovations that truly stand out? iPh…yes, that’s a given, but with Apple’s size and revenue, it’s time for Tim to grow out and away from being Mr. Late & Latent. He’s been in this mode for a long time and eventually, effects will be seen on the balance sheet.

  3. Just think how happy we all would be if Apple would just release one each of a pro and standard desktop and laptop once per year with a spec/feature or price adjustment every six months.

    1. The perception of being cutting edge with yearly Mac updates would be worth it’s weight in gold (and worth the trouble) in reputation, loyalty and sales.

      I wish we could pull a handle with a hinged shoe on it to kick every Apple executive’s butt (on a regular basis) to keep them paying attention and working on what people want and expect. Their problem is Steve Jobs is no longer around to do that and so you get the impression they’ve continued to take it relatively easy with the proverbial “5 guys” since Steve’s passing.

    2. It’s was Steve’s symbol to illustrate Apple’s get-back-on-track focus. Apple’s beyond the simple stool, but a simplicity focus would be good to revisit as Apple seems to be a jack of many trades, with the iPhone being the head of the hydra. Yes, “Rp,” such product releases should be a part of the stable stool…in fact “a-given.”

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