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Apple to Report Fiscal Q4 Earnings: Can it Deliver?
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Shares of Apple (AAPL - Free Report) gained only 0.5% on Oct 30, reacting in a lukewarm manner to its grand product-launch event. But this is no way detracts from the major gains it has notched up over the last year. The stock has gained nearly 28% over this period and has notched up a similar increase year to date.
Further, Apple’s market cap recently hit the $1 trillion mark. The question now remains whether the software giant can counter slowing iPhone sales with revenues from other areas.
In any case, it would be difficult to ignore the world’s most valuable company as it prepares to report earnings on Nov 1. This is the last FAANG stock to post results for the third-quarter earnings season. Facebook , Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) and Netflix (NFLX - Free Report) have already reported earnings numbers.
Higher Average Selling Price Counters iPhone Sales Slide
Apple reported fiscal third-quarter earnings on Jul 31, 2018. This turned out be its best June quarter ever and the fourth-straight quarter of double-digit increase in revenues. Nearly 64% of its total revenue comes from the iPhone and the flagship product lines’ sales have been slipping over the last few years.
This year iPhone unit sales have grown by single digits. Sales increased 1% year over year in the third quarter but came in under analyst expectations. Apple has countered this phenomenon by focusing on selling more expensive models. Consequently, average selling price rose 19% from the year-ago quarter.
Fresh Mac Line Up to Combat Sales Slide
According to figures released by Gartner earlier this month, worldwide Mac shipments declined in the third quarter of 2018. Per these estimates, Apple shipped around 4.9 million units, 8.5% lower than the year-ago quarter. Market share also slipped from 8% in the year-ago quarter to 7.3%.
This situation is likely to be remedied by the new line up of devices released on Oct 30. At the launch event at Cupertino, Apple unveiled a new MacBook Air, an upgraded Mac mini and a larger iPad Pro. Incidentally, Apple has raised prices of the MacBook Air and the iPad pro by around 20% and 25%, respectively.
New iPhones Crucial for Success
The latest iPhone lineup was launched only at the end of the last quarter. But investors will still be looking for indications about the sales prospects of the iPhone XS, XS Max and the XR. Nearly 56% of Apple’s revenues came from iPhones in the last quarter.
The prospects of wearables, such as the new Apple watch will also be closely watched. Investors will also be looking for clues about whether Apple can achieve its goal of boosting service revenues to $51 billion by 2020. Since the figure already hit $35.7 billion in the last quarter, Apple appears to be on track.
Earnings Beat on the Cards
Apple, a Zacks Rank #3 (Hold) company, currently has an Earnings ESP of +1.35%. This is Zacks’ proprietary methodology for determining stocks that have the best chance to surprise with their next earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple is widely expected to report earnings per share of $2.79 for fiscal fourth quarter, substantially higher than the reported earnings of $2.07 a year ago. The company’s current-year earnings are expected to rise 14.8%. The Zacks Consensus Estimate for earnings has increased by 0.3% over the last 60 days.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Image: Bigstock
Apple to Report Fiscal Q4 Earnings: Can it Deliver?
Shares of Apple (AAPL - Free Report) gained only 0.5% on Oct 30, reacting in a lukewarm manner to its grand product-launch event. But this is no way detracts from the major gains it has notched up over the last year. The stock has gained nearly 28% over this period and has notched up a similar increase year to date.
Further, Apple’s market cap recently hit the $1 trillion mark. The question now remains whether the software giant can counter slowing iPhone sales with revenues from other areas.
In any case, it would be difficult to ignore the world’s most valuable company as it prepares to report earnings on Nov 1. This is the last FAANG stock to post results for the third-quarter earnings season. Facebook , Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) and Netflix (NFLX - Free Report) have already reported earnings numbers.
Higher Average Selling Price Counters iPhone Sales Slide
Apple reported fiscal third-quarter earnings on Jul 31, 2018. This turned out be its best June quarter ever and the fourth-straight quarter of double-digit increase in revenues. Nearly 64% of its total revenue comes from the iPhone and the flagship product lines’ sales have been slipping over the last few years.
This year iPhone unit sales have grown by single digits. Sales increased 1% year over year in the third quarter but came in under analyst expectations. Apple has countered this phenomenon by focusing on selling more expensive models. Consequently, average selling price rose 19% from the year-ago quarter.
Fresh Mac Line Up to Combat Sales Slide
According to figures released by Gartner earlier this month, worldwide Mac shipments declined in the third quarter of 2018. Per these estimates, Apple shipped around 4.9 million units, 8.5% lower than the year-ago quarter. Market share also slipped from 8% in the year-ago quarter to 7.3%.
This situation is likely to be remedied by the new line up of devices released on Oct 30. At the launch event at Cupertino, Apple unveiled a new MacBook Air, an upgraded Mac mini and a larger iPad Pro. Incidentally, Apple has raised prices of the MacBook Air and the iPad pro by around 20% and 25%, respectively.
New iPhones Crucial for Success
The latest iPhone lineup was launched only at the end of the last quarter. But investors will still be looking for indications about the sales prospects of the iPhone XS, XS Max and the XR. Nearly 56% of Apple’s revenues came from iPhones in the last quarter.
The prospects of wearables, such as the new Apple watch will also be closely watched. Investors will also be looking for clues about whether Apple can achieve its goal of boosting service revenues to $51 billion by 2020. Since the figure already hit $35.7 billion in the last quarter, Apple appears to be on track.
Earnings Beat on the Cards
Apple, a Zacks Rank #3 (Hold) company, currently has an Earnings ESP of +1.35%. This is Zacks’ proprietary methodology for determining stocks that have the best chance to surprise with their next earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple is widely expected to report earnings per share of $2.79 for fiscal fourth quarter, substantially higher than the reported earnings of $2.07 a year ago. The company’s current-year earnings are expected to rise 14.8%. The Zacks Consensus Estimate for earnings has increased by 0.3% over the last 60 days.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>