“Apple is scheduled to publish its fiscal Q2 results on April 30, reporting on a quarter that likely saw the company’s iPhone business continue to underperform, although the Services business likely gained further traction,” Trefis Team and Great Speculations write for Forbes. ”
“We expect reported EPS to come in at about $2.40 per share,” Trefis and GS write. “We expect Services revenues to rise by over 16% YOY to nearly $11 billion, driven by App sales, and its subscription businesses.”
“Apple Music,” Trefis and GS write, “which recently overtook Spotify in terms of paid U.S. users, could also drive Services revenues.”
Read more in the full article here.
MacDailyNews Note: On January 29, 2019, Apple provided the following guidance for the company’s fiscal 2019 second quarter:
• revenue between $55 billion and $59 billion
• gross margin between 37 percent and 38 percent
• operating expenses between $8.5 billion and $8.6 billion
• other income/(expense) of $300 million
• tax rate of approximately 17 percentSEE ALSO:
Apple’s history says Q2 will disappoint investors – April 15, 2019
Apple’s Q219 earnings will be revealed on April 30th – April 2, 2019
What to expect? Thats an easy one AAPL stock goes down at least 5% on “disappointing” earnings.
Revenue guidance of $55B-$59B in a seasonally slow quarter. This isn’t the Apple of the mid-1990s!
Lousy iPhone sales will send the share price down although Apple no longer reports iPhone unit sales. Rumors will be enough to cause investors to dump Apple stock. I think each time Apple gets close to the $1T market cap mark, there will be some negative news to stop it from reaching that mark. Look how easy it is for Microsoft to climb to the $1T mark. No bad rumors and plenty of praise for their cloud business.
As long as Apple continues to have difficulty in selling iPhones, Wall Street will never give Apple the benefit of the doubt in terms of Services value. Apple is going to need some spectacular video streaming service to give some sort of confidence to big investors or Apple won’t remain the market cap king much longer.