AAPL will report second-quarter earnings tomorrow, and the company has already warned that we should expect full-year results. The year-over-year revenue decline was about $5 billion.
Analysts expect the same, and the third-quarter outlook isn't expected to be any better, so investors will be keeping their eyes peeled for any additional clues from Apple about what to expect going forward. … ;
AAPL's second-quarter earnings will be difficult to compare
Apple's fiscal year begins in October, so the second fiscal quarter includes the first quarter of the calendar year, from January to March.
The pandemic is being felt just like a long time ago, but this still needs to be taken into account when comparing year-on-year figures. Apple isn't giving specific guidance at this time, but after announcing first-quarter earnings back in February, CFO Luca Maestri sought to temper expectations for the second quarter.
As a reminder, in the December quarter a year ago, we faced significant supply constraints for the iPhone 14 Pro and 14 Pro Max due to factory closures due to COVID-19. And in the March quarter a year ago, we were able to restock channels and meet significant pent-up demand due to restrictions. We estimate that this impact increased total revenue for the March quarter last year by nearly $5 billion. When we remove this impact from last year's revenue, we expect the company's total March revenue and iPhone revenue to be the same as a year ago.
In other words, Earnings of 94 The $.8 billion recorded in the same quarter last year was artificially inflated to $5 billion, so we should probably expect revenue this year to be closer to $90 billion.
Analysts also expect revenue of $90 billion
Analyst expectations don't always match Apple's given tips, but in this case they're forecasting the same $90 billion. Yahoo's survey shows the average analyst estimate is $90.01 billion. This would represent a decline of 5.1% year-over-year.
The decline in earnings per share (EPS) is expected to be smaller, thanks in part to Apple's ongoing share buybacks reducing its overall share count. in circulation. Last year, earnings per share were $1.52, and this year analysts expect earnings per share to be $1.50.
Optimism around the future
Analysts are optimistic about Apple's long-term future. The average price target for AAPL stock is $198.90, up significantly from the current $170.33.
Apple's move into generative artificial intelligence this year is expected to transform Siri's capabilities with the company. reportedly considering iOS 18 as one of the biggest and most interesting updates. Analysts and investors will be listening closely for any further clues from the company about what to expect.
One thing we probably won't hear much about is the Vision Pro. While the sales will be reflected in the overall wearables category, Apple is unlikely to go into any detail. This move is a long-term bet for the company and we can expect some very general comments about a positive start.
We will of course update you with the numbers as soon as they are announced. tomorrow.
Photo by Nimisha Mekala on Unsplash
