Apple set to report earnings after the bell - CNBC

Apple reports fiscal fourth-quarter net aft the doorbell connected Thursday.

Here's what Wall Street is expecting, according to Refinitiv estimates:

• EPS: $1.27 per share
• Revenue: $88.90 billion

The institution faces respective headwinds, but investors anticipation that the iPhone shaper is mostly immune acknowledgment to its beardown brand, dedicated owners and beardown request for costly devices.

PC and smartphone request is falling astir the world, perchance affecting Apple's lucrative iPhone and Mac businesses. Apple besides has the situation of a beardown dollar erstwhile income from different countries marque up the bulk of the firm's business.

Plus, fears of a imaginable recession that could deed discretionary spending hard are inactive rising successful the U.S.

Wall Street is expecting Apple's income to turn successful the September 4th connected an yearly basis. Analysts are besides expecting flimsy maturation successful the existent 4th ending successful December, which is traditionally Apple's biggest of the twelvemonth (and has an other week of income this year.)

Apple hasn't provided authoritative guidance since the commencement of the pandemic, but it offers analysts immoderate information points that let them to backmost into the quality to forecast sales. Any guidance that suggests a lighter-than-expected vacation play could deed the banal hard.

Google, Meta and Microsoft person already reported disappointing earnings this week, showing that Big Tech is not immune.

"We bash not expect AAPL to supply gross guidance for F1Q (Dec) owed to the ongoing macro uncertainty, but we judge the institution volition suggest gross maturation volition decelerate," wrote Deutsche Bank's Stanley Ho successful a enactment past week.

The biggest question for investors whitethorn beryllium if Apple's profitable services concern continues growing.

Apple CFO Luca Maestri warned investors successful June that the company's high-margin services business, which has grown consistently during Apple CEO Tim Cook's tenure, would person a little maturation complaint than 12%, its slowest successful years.

Apple's services see gross from the App Store, subscriptions specified arsenic Apple Music, hunt licensing fees from companies specified arsenic Google, hardware warranties and different businesses. In the past week, Apple has raised prices for immoderate of its astir fashionable subscriptions, specified arsenic Apple Music, and added caller advertisement units successful its App Store, successful a motion that the institution whitethorn beryllium taking actions to summation services revenue.

The company's services conception faces hard comparisons to 2021, erstwhile radical utilized the company's subscription offerings much portion they were astatine home. Maestri besides cited a beardown dollar and macroeconomic factors arsenic a crushed for his forecast.

However, investors anticipation that services commencement to turn faster again starting successful December. "Most investors are aligned that services gross maturation should accelerate" during the December 4th again, wrote Morgan Stanley's Erik Woodring successful a enactment this week.

If Apple feels unit from macroeconomic conditions, it's apt to amusement up successful Apple Watch and AirPods sales, said Woodring successful the note.

"We judge Wearables are the astir discretionary merchandise successful Apple's portfolio and truthful astir prone to the pullback we are seeing successful user electronics spending," Woodring wrote.

The 4th volition person astir a week of iPhone 14 sales, and investors are funny for immoderate hint astir whether this year's rhythm is strong. So far, expert reports person suggested that Apple's pricey iPhone 14 Pro models are selling amended than the lower-cost iPhone 14 models, which suggests that Apple whitethorn beryllium convincing customers to walk much connected their phones.

Some analysts judge the institution could payment from debased capitalist expectations, fixed the macro situation and due to the fact that Apple shares are already down astir 18% truthful acold this year.

"We don't judge fundamentals are immune to the macro backdrop, but we spot the operation of a resilient iPhone merchandise rhythm successful narration to revenues alternatively than volumes, arsenic good arsenic margins, to present results that show resiliency supra the debased barroom of capitalist expectations astatine this time," JPMorgan's Samik Chatterjee wrote successful a enactment connected Monday.