Apple’s supply chain in China was constrained in the June quarter as the Chinese Communist Party enacted draconian lockdowns in a futile “zero-COVID” quest. The extent of the impact will be revealed when the Cupertino Colossus reports fiscal third-quarter results Thursday after market close.
Shanthi Rexaline for Benzinga:
Cupertino’s stock has shed about 11.5% year-to-date. This compares to the 15.6% drop by the S&P 500 Index and the 23% plunged by the tech-heavy Nasdaq Composite Index.
After plunging to a low of $129.04 on June 16, the stock has reversed course and advanced to a high of $157.33 — a trough-peak gain of about 22%. The recent gain has pushed the stock into overbought territory. It would require a solid report to push the stock higher.
On the upside, the stock has near-term resistance around the $166 level, and it could see support around the $150 level in the eventuality of a pullback after earnings.
Historically, Apple’s shares perform better in the second half of the year than the first half, primarily due to back-end loaded hardware sales during the holiday and back-to-school seasons.
MacDailyNews Take: The Wall Street analysts’ consensus (FactSet) expect Apple to earn $1.16 per share on revenue of $82.8 billion in the company’s fiscal third quarter, which would be a year-over-year EPC decline of 11% (vs. $1.30 in Q321) with revenue up slightly (vs. $81.4 billion in Q321).
Apple reports fiscal Q3 2022 earnings on Thursday, July 28th after market close. As usual, we’ll have the results for you as soon as they are available, right around 1:30pm PDT / 4:30pm EDT.
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