Apple set to report quarterly earnings after the bell

Apple is scheduled to report fiscal second-quarter outcomes after the shut of standard buying and selling on Thursday.

Here’s what analysts predict:

• EPS: $1.43 per share, in line with Refinitiv
• Revenue: $92.96 billion, in line with Refinitiv

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Revenue is anticipated to lower 4.4% from $97.28 billion in the identical quarter a yr in the past.

Apple ready buyers for a down quarter in January. The firm hasn’t supplied formal steering since 2020, but it surely provides analysts and buyers numerous knowledge factors that can be utilized to roughly estimate its efficiency.

The data it supplied earlier this yr advised that gross sales would drop for a second straight quarter by roughly 5%. Sales of iPads and Macs are anticipated to see sharp decreases — 12% and 25.4%, respectively — and iPhone gross sales additionally probably dropped.

Analysts polled by FactSet anticipate annual declines in all of Apple’s {hardware} product traces.

The tech large’s report comes because the PC and smartphone markets are mired in one of many worst slumps in recent times. Electronics gross sales are down sharply after many shoppers purchased new PCs and telephones throughout the pandemic and others are tightening their belts due to excessive inflation or recession worries.

In the primary quarter, PC shipments decreased virtually 30%, in line with IDC, whereas smartphone shipments have been off 14%.

Apple’s report wraps up earnings season for tech’s mega-cap firms, after Alphabet, Amazon, Meta and Microsoft all issued outcomes final week. All 4 topped analyst estimates, although development charges have been nonetheless muted in comparison with prior years.

While Apple is not proof against the broader market slowdown, some analysts hope it can present power and resiliency as a result of it sells premium merchandise and has loyal clients.

Refinitiv consensus estimates recommend Apple might information again to development. They anticipate 2% growth within the third quarter. But others are involved that income will hold falling, suggesting that demand for Apple’s merchandise is eroding.

“The eventual outcome might be simply driven by F3Q guidance, where investors might be looking for assurance and visibility into limited downside despite a tough macro,” Samik Chatterjee, an analyst at JPMorgan, wrote in a be aware this week.

If Apple’s outlook suggests a year-over-year decline that is lower than 5%, Apple might nonetheless “triumph” on fundamentals, Chatterjee wrote.

Along with earnings, Apple can also be prone to replace buyers on its capital return authorization. Analysts anticipate the iPhone maker to announce plans to spend as a lot as $90 billion on share repurchases and dividends.

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