Earnings season is quick approaching. Traders in Apple inventory ought to mark their calendars for Wednesday, April 28, and take note of afterhours motion on Wall Road.
The Cupertino firm is anticipated to ship an earnings report with robust double-digit progress in revenues and EPS (earnings per share) over straightforward pandemic yr comps.
As we speak, the Apple Maven begins to debate the small print of what to anticipate on earnings day. Over the subsequent two weeks, I’ll dive deeper into every main section, together with the iPhone, companies and Higher China.
For full weblog protection of the occasion and a overview of the outcomes, in actual time, tune in to the Apple Maven’s channel on April 28, beginning at 4 p.m. EST. Apple traders shouldn’t miss this one!
Analysts at the moment challenge that Apple will ship spectacular progress figures in fiscal second quarter. Revenues are anticipated to come back in 32% above year-ago ranges. Even higher, quarterly earnings per share ought to land greater than 50% greater year-over-year.
These estimates counsel that Apple’s quarter would be the finest in a few years, 5 on the very least. Progress must be sky-high due to a couple components:
- The iPhone 12 was launched with delays in 2020, which shifted demand into the latest vacation quarter. Continuation of the 5G improve cycle may propel iPhone revenues this time.
- The worldwide pandemic isn’t over but. Work-from-home and stay-at-home tendencies will possible nonetheless act as tailwinds to fiscal second quarter outcomes.
- Very importantly, the post-holiday quarter will face straightforward comps. Final yr’s fiscal second interval noticed revenues barely inch ahead, because of the preliminary impression of COVID-19 disruptions, on prime of a second quarter 2019 that had been the worst interval of progress since 2016.
What may stand out
It’s possible that the iPhone will carry out properly in fiscal second quarter. The vacation interval proved that demand for Apple’s 5G-capable, higher-end smartphones has been robust to this point.
Will probably be fascinating to gauge the combination of higher-priced Professional fashions to lower-priced 12 mini units. The previous has been reported to have better market attraction than the latter, which may bode properly for common costs and margins.
I additionally count on companies to come back in scorching. Within the vacation interval, the section posted its finest top-line progress fee of the previous 5 quarters, in all probability because of extra choices (Arcade, Health+) and higher pricing preparations (i.e. Apple One). Momentum is more likely to carry ahead into the March quarter.
Lastly, two under-the-radar components may present an additional enhance to the Cupertino firm’s P&L. First, Apple may benefit from all its bodily places being open within the US for about one-third of your entire three-month interval. Second, a few of the fiscal stimulus cash distributed in March might have discovered its approach into Apple’s coffers as early because the fiscal second interval.
I’ve just lately requested Twitter if Apple’s March quarter monetary outcomes will impress. I acquired 70 responses to the ballot beneath, almost 80% of which have been extremely bullish.
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(Disclaimers: this isn’t funding recommendation. The writer could also be lengthy a number of shares talked about on this report. Additionally, the article might comprise affiliate hyperlinks. These partnerships don’t affect editorial content material. Thanks for supporting The Apple Maven)