![]() He’ll be watching for signs of a “bigger-than-expected headwind from the strong U.S. dollar strengthened against a basket of currencies that we believe are important to Apple” during the quarter. Davidson analyst Tom Forte notes that “the U.S. While Apple’s management team predicted about three months back that foreign exchange could have a 600-basis-point negative impact on sales growth in the September, D.A. One key issue across earnings reports this cycle is the negative impact of the stronger U.S. Of the 41 analysts tracked by FactSet who cover Apple’s stock, 32 have buy ratings, seven have hold ratings, and two have sell ratings, with an average price target of $143.39. ![]() Which counts Apple as a component, has lost 17% and the S&P 500 index The stock has fallen 19% so far this year, while the Dow Jones Industrial Average Stock movement: Apple shares have gained after only three of the company’s past 10 earnings reports. ![]() Apple posted $18.3 billion in revenue for that category a year ago. And they’re calling for services revenue to top $20 billion for the first time at $20.1 billion. The company posted $8.3 billion in iPad revenue and $9.2 billion in Mac revenue during the same period in 2021.Īnalysts project $8.9 billion in wearables, home, and accessories revenue, up from $8.8 billion a year before. They’re also looking for $7.7 billion in iPad revenue and $9 billion in Mac revenue, both of which would mark declines from year-earlier figures. Those contributing to Estimize expect $88.8 billion on average.Īnalysts tracked by FactSet are looking for Apple to post $43.4 billion in iPhone revenue, up from $38.9 billion a year prior. Revenue: The FactSet consensus calls for $88.7 billion in revenue, up from $83.4 billion a year earlier. On Estimize - which crowdsources projections from hedge funds, academics, and others - the average estimate calls for $1.29 in earnings per share. What to expectĮarnings: Analysts tracked by FactSet expect Apple to post $1.27 a share in earnings for the September quarter, up from $1.24 a share a year before. Here’s what to watch for in the company’s fiscal fourth-quarter report. Further, Apple could be realizing higher average selling prices given the indications that Pro devices are selling better than the cheaper base-level ones. “Demand has remained strong and is in stark contrast to recent concerns around a slowdown,” he wrote. The phones went on sale starting in September. He noted that while lead times for the Pro-level models have come down internationally, they remained stable in the U.S. Panic over possible production cuts appears at odds with other seemingly healthier demand indicators, according to Evercore ISI analyst Amit Daryanani. Opinion: Tech earnings are about to dive, and there’s no life preserver in sight While Sacconaghi doesn’t think the company will provide traditional quantitative guidance - management has offered something more along the lines of “guidelines” since the pandemic began - he predicts that Apple’s “qualitative commentary around the demand environment may ultimately shape investor sentiment more.” That seems especially the case in the current economic climate. “Historically, Apple’s FY Q4 earnings results are not particularly important, but forward guidance/commentary is,” Bernstein analyst Toni Sacconaghi wrote ahead of Apple’s Oct. ![]() For Apple to produce only as many phones as it did last cycle would hardly be earth-shattering, but if the company did indeed recently adjust estimates, it could be seeing consumer-spending signals that have ramifications for the company’s broader portfolio. Read: Apple’s rumored production cutback ‘overshadows the underlying story’ of strong iPhone 14 Pro demandĪdditionally, a Bloomberg News report from late September indicated that Apple was declining to go ahead with planned production increases for the iPhone 14 family as it instead targeted production levels similar to last year. Such a trend could signal spending pressure among lower-income customers who might typically opt for one of the base-level iPhones-or it could merely reflect the lack of meaningful feature improvements in those specific devices relative to the Pro models. One recent report, from The Information, said that Apple told “at least one manufacturer in China to immediately halt production of iPhone 14 Plus components” as the company reassesses the device’s demand. ![]() There’s debate about what the reported production cuts actually mean. ![]()
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