Apple earnings: What to expect from the iPhone maker - MarketWatch

The results volition besides bespeak whether Apple has been capable to support momentum successful its Mac concern pursuing a record 4th for the segment 3 months back. Apple isn’t expected to apical that grounds this clip around, but the Mac concern could inactive beryllium a root of upside amid iPhone uncertainty.

See more: Apple net whitethorn trust connected an improbable leader amid iPhone uncertainty

Here’s what to expect erstwhile Apple posts results Thursday afternoon.

What to expect

Earnings: Analysts tracked by FactSet expect that Apple earned $1.94 a stock successful its fiscal archetypal quarter, down from $2.10 a stock a twelvemonth prior. According to Estimize, which crowdsources projections from hedge funds, academics, and others, the mean estimation is for $1.98 a share.

Revenue: The FactSet statement calls for $121.4 cardinal successful December-quarter revenue, down from $123.9 cardinal a twelvemonth prior. Those contributing to Estimize expect $122.4 billion.

Analysts tracked by FactSet expect iPhone gross to person declined to $67.8 cardinal from $71.6. cardinal a twelvemonth before. Consensus estimates telephone for $7.8 cardinal successful iPad revenue, up from $7.2 cardinal a twelvemonth before, on with $9.4 cardinal successful Mac revenue, down from $10.9 billion.

Analysts exemplary $15.3 cardinal successful gross from wearables, location and accessories for the quarter, up from $14.7 cardinal a twelvemonth earlier. Services gross is expected to emergence to $20.4 cardinal from $19.5 billion.

Stock movement: Apple shares person risen aft 3 of the company’s past 5 net reports, including some of the past two. The banal has fallen astir 19% implicit the past 12 months, though it’s up 9% to commencement 2023. The Dow Jones Industrial Average DJIA, +0.02%, of which Apple is simply a component, has fallen astir 5% implicit a 12-month span and is up astir 2% truthful acold successful 2023.

Of the 41 analysts tracked by FactSet, 30 person bargain ratings, 9 person clasp ratings, and 2 person merchantability ratings, with an mean terms people of $168.48.

What other to ticker for

While Evercore ISI expert Amit Daryanani saw immoderate imaginable “downside” to December-quarter driven by iPhone dynamics, helium said that a pullback successful Apple’s banal suggests “a miss shouldn’t person a worldly interaction connected shares arsenic agelong arsenic Apple provides a usher that indicates they expect to retrieve the mislaid income arsenic we determination done FY23.”

Apple’s proviso problems are easing, but that doesn’t mean that the institution is retired of the woods.

“With proviso concatenation challenges mostly normalized, we present believe AAPL is entering a play of slower request owed to macro factors,” Cowen & Co. expert Krish Sankar wrote successful a enactment to clients. Apple “has been a stock gainer successful the smartphone and notebook markets implicit the past year, though our latest tract enactment suggests near-term merchandise builds are seeing reductions vs anterior marketplace expectations.”

While Sankar said helium thinks that the iPad concern “benefited from seasonality and improved constituent availability,” his supply-chain conversations indicated the imaginable for “slowing demand” wrong Macs.

Apple hasn’t been providing accepted guidance alongside its earnings, but Wall Street volition nevertheless beryllium looking for clues astir the future.

“The code connected the telephone volition beryllium important to recognize the underlying request trajectory fixed the Dec qtr was importantly proviso constrained for the higher extremity Pro models of iPhones,” wrote Bank of America expert Wamsi Mohan.

His iPhone tracker “shows that availability has normalized and leads america to reason that request could beryllium softer than expected successful 1H23,” helium wrote.

Read: Looking for clues astir iPhone supply? Ask AT&T, Verizon and T-Mobile