“iPhone X demand remains a focus for Wall Street heading into Apple’s fiscal second-quarter earnings report, due after the bell on Tuesday,” Emily Bary reports for MarketWatch. “Apple shares have been dinged in recent days by perceptions of weakness in the Apple supply chain, and iPhone unit-sales estimates have been crawling steadily lower since late last year.”
“Consensus estimates call for 53 million iPhones sold in the second quarter, per FactSet, down 15% from the 62 million analysts were projecting for the period when 2017 ended,” Bary reports. “Analysts expect 19% year-over-year growth for the [Services] segment this time around and will be looking for the company’s commentary on fast-growing areas like the App Store and Apple Music, as well as newer efforts to drum up services business.”
“Analysts tracked by FactSet expect that average selling prices [for iPhone] grew 13% from a year earlier, to $742,” Bary reports. “Analysts surveyed by FactSet estimate that Apple earned $2.69 a share for the March quarter, up from $2.10 a year earlier. According to Estimize, which crowdsources estimates from hedge funds, academics, and others, the average projection calls for $2.73 in adjusted EPS. Apple has beaten EPS expectations in all but one quarter since the start of 2013.”
“The average revenue estimate according to FactSet calls for $61.2 billion in sales, while the Estimize consensus projects $61.6 billion. The company generated revenue of $53 billion a year prior, and projected revenue of $60 billion to $62 billion for the March quarter,” Bary reports. “Analysts expect that Apple brought in $39 billion from iPhone sales and $8.4 billion from services sales, per FactSet, up from $33 billion and $7 billion for the March 2017 quarter.”
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MacDailyNews Take: Beyond the usual (revenue, EPS, etc.) and the ever-important next quarter’s guidance, all eyes will be on Apple’s capital return program announcement.