Apple is set to report fiscal second quarter 2022 earnings results after the bell on Thursday. Here’s what the analysts expect.
Matthew Johnston for Investopedia:
Analysts estimate EPS of $1.43 vs. $1.40 in Q2 FY 2021. [Revenue expectations for the quarter stand at $93.89 billion vs. $89.6 billion in Q221.]
Analysts expect services revenue to grow at double the pace of the company’s overall revenue in the current fiscal year. Growth in services revenue has a major impact on Apple’s profits because sales of advertising, the App Store, and Apple TV+, and other services generate dramatically larger margins than the company’s products. It’s no wonder that Apple is now working on a subscription service for its iPhone and other hardware devices.2
Analysts expect Apple’s financial performance to moderate considerably in Q2 FY 2022. EPS is expected to grow 2.2% compared to the year-ago quarter, sharply slower than the previous quarter’s pace. Revenue is forecast to expand 5.3% YOY, its slowest pace since the final quarter of FY 2020. For full-year FY 2022, analysts expect EPS to increase 9.5%, the slowest annual pace since earnings declined in FY 2019. Annual revenue is expected to grow 8.4%, which would be the slowest pace since FY 2020.
In Q1 FY 2022, services revenue rose 23.8% YOY, faster than the 9.2% pace of growth for products revenue. Analysts expect Apple’s services revenue to grow 17.0% YOY in Q2 FY 2022. For full-year FY 2022, analysts are currently forecasting Apple’s services revenue to expand 17.2%.
MacDailyNews Note: As usual, we’ll have Apple’s results for you as soon as they are released, just check our homepage right around 1:30 p.m. PDT / 4:30 p.m. EDT on Thursday, April 28th. We will follow that with live notes from Apple’s’ conference call starting at 2:00 p.m. PT / 5:00 p.m. EDT on the 28th.
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