Apple reports earnings for their fiscal first quarter after market close on Tuesday, January 28th. As shareholders likely know quite well, Apple’s share price has more than doubled since the beginning of 2019.
Apple’s conference call to discuss first fiscal quarter results is scheduled for Tuesday, January 28, 2020 at 2:00 p.m. PT / 5:00 p.m. ET. You can listen to the conference call webcast live here.
As Apple stock’s remarkable recent performance demonstrates, expectations are sky high… Apple’s guidance for the fiscal first quarter, ended December, called for revenue of $85.5 billion to $89.5 billion. The Street consensus estimate is at $88.4 billion, but estimates have been rising, and any report inside the guidance range might be viewed as disappointing. The Street sees profits for the quarter of $3.03 a share. Also keep a close eye on guidance for the fiscal second quarter ending March: Consensus estimates for revenue and earnings per share are currently $62.5 billion and $2.82, respectively, but a growing chorus of Wall Street analysts contend the current view is too conservative.
Bernstein analyst Toni Sacconaghi took a close look at Apple’s stock performance in a research note Friday. He says the big story is really the re-rating of the stock — Apple’s price/earnings multiple on forward earnings has ballooned to 24 times from 13 times a year ago.
MacDailyNews Take: Wall Street is finally beginning to understand the value of Apple, but they still have a long way to go when it comes to Apple’s price/earnings multiple!
Apple investors’ concerns will be about the usual things: iPhone, Services, and Wearables revenue, Greater China sales, buybacks, and next quarter’s guidance. As always, as soon as Apple reports earnings, we’ll have them for you right around 4:30pm ET. Following shortly thereafter, we’ll have live notes during Apple’s conference call with analysts starting at 5pm EDT. Just check our home page at those times next Tuesday.
I’ll bet quarter results will be record breaking…maybe astoundingly so. I also think it’s quite possible the forecast for the quarter will be far different and may cause a material drop in share price.
I’m not an expert, or anything close…just a holder considering if a bit of profit taking would be a smart move. I do think the year will be strong, but I’m not sure if I want to wait many months to sell.
Opinions?
I’m in the same boat. Started with a $6,000 investment in 2000 now worth close to half a mil. Retired last year and wife retiring this year. BUT we’re (us Apple stockholders) are on an Apple winning streak with no looming dark clouds on the horizon so it seems we should wait least until the fall of this year maybe? By then it might be substantially larger, especially if it comes near $400 targets. Hopefully no global calamities are waiting in the wings.
I’m not going to tell you what to do. But I’ve been holding Apple since 1998, and, in that time, I’ve witnessed the kind of growth I never even dreamed about, with very little downside (I’m looking at you, 2018). As MDN points out, AAPL stock has doubled since this time last year. I’m shoveling in every dollar I can and doubling down. I think AAPL is reasonably headed toward $1.5T, possibly even by the end of this year. $2T is not at all out of the question in the next 3-5 years, which would be a doubling in value just since 2018. What if I’m wrong? What if the stock drops 20-30%? Considering where I started from, that’s still a stupendous net gain. I don’t have any pressure to sell right now, so I want to build as much financial muscle mass as possible before that time comes. If Apple performs at only half of its historical average over the past 20 years for just the next few years, my wife and are going to have no financial worries in retirement.
I do think the year will be quite robust and I’m not telling anyone what to do, but if not in a place to sell/enjoy a bit now/soon, I’d hold through 2020, at least…maybe early 2021.
I was more wondering specifically about selling a bit for a need now in the event the stock dips after a possible low forecast. For one that doesn’t “need” to sell a bit now, I have a confidence it’ll recover, should there be a drop after the announced forecast.
Regardless, all is good. AAPL is a gift.
I’m in the same boat as you. Bought stock in the 2000s and enjoying a rather large multiple. I have sold some stock before when I think it has reached a high.
Earnings are a tricky thing. I agree it is all about the forecast for the next quarter. I may sell a chunk on Monday and see where the stock goes. Will probably need to buy back before ex-dividend.
MDN, when you report on the conference call, tell us what questions were asked. Simply reporting the answers means that there is no context for the answers.
Will do!