What to look for in Apple’s Q119 earning report after the bell

Apple’s key earnings report drops today after the closing bell, right around 1:30pm Pacific / 4:30pm Eastern.

“Earlier this month, Apple adjusted revenue estimates to $84 billion, down from a previously stated range of $89 billion to $93 billion,” Sara Salinas reports for CNBC. “Shares tanked 10 percent but have since clawed their way back to trade essentially flat for 2019.”

“The company will be disclosing some metrics for the first time, and omitting others when it reports results for the December quarter. Any surprises in the first-of-its-kind report out of Apple could shift the stock, which has seen unusual volatility in recent months,” Salinas reports. “Shares have lost 30 percent of their value since the company’s last earnings report in November. The company’s market valuation is now more than $250 billion less than the record $1 trillion it reached in August.”

“Revenue realized in Greater China — a traditionally strong growth market for Apple — could take a hit this quarter, amid an economic pullback,” Salinas reports. “Apple has said it will report services margin for the first time during its first-quarter update, shedding new light on the segment’s prospects.”

Read more in the full article here.

MacDailyNews Take: Also, look for the all-important Q219 guidance. Analysts’ consensus via FactSet currently expects $59.3 billion in Q219 revenue.

On January 2, 2019, Apple CEO Cook provided the following guidance:

• Revenue of approximately $84 billion
• Gross margin of approximately 38 percent
• Operating expenses of approximately $8.7 billion
• Other income/(expense) of approximately $550 million
• Tax rate of approximately 16.5 percent before discrete items

We expect the number of shares used in computing diluted EPS to be approximately 4.77 billion.

As usual, we will bring you Apple’s results and the all-important Q219 guidance as soon as they are released, right around 4:30pm ET tomorrow, January 29th and follow up with live notes from Apple’s conference call will analysts starting at 5pm ET.

Apple stock set for recovery or takedown after earnings report? – January 28, 2019
Apple CEO Tim Cook issues public letter to investors, lowers guidance – January 2, 2019


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