DA Davidson Research Analyst Tom Forte joined Yahoo Finance Live this week to preview Apple earnings and said that the big unknown is how much supply-chain disruptions impacted Apple’s holiday quarter sales.
Forte: Sure. So when I think about Apple and I think about reporting the December quarter, the big question is, to what extent was supply-chain disruption — how did that impact their sales? We knew that in the September quarter, it had negatively affected their sales by $6 billion, and the expectation was that lost sales in the December quarter would be even greater than $6 billion. So I think the first thing we look for for Apple’s earnings is, how are they on the supply chain, when are things going to get better, and how should that affect their sales and earnings over the next 12 months?
Earnings for Apple could not have come at a better time because ultimately, when I think about sell-offs and I would think about pullbacks in the stock market, ultimately, investors are trying to determine what is the appropriate multiple to pay for a stock. So to the extent that Apple is able to show that, hey, their next 12-month sales and profitability looks better than expected, then that may offset some of the investor anxiety on rising rates, which tend to have a negative impact on valuations, especially for technology shares, which often have materially higher multiples than other stocks in the market.
MacDailyNews Note: Apple reports Q122 results on January 27th. Analysts’ consensus expects the company to earn $1.88 a share on all-time quarterly revenue of $118.38 billion.
We’ll have Apple’s results for you as soon as they are released, just check our homepage right around 1:30 p.m. PT / 4:30 p.m. ET on January 27th. We will follow that with live notes from Apple’s’ conference call starting at 2:00 p.m. PT / 5:00 p.m. ET on the 27th.
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