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Apple reports earnings on Tuesday: What to expect

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.

Eric J. Savitz for Barrons:

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.

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