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Apple & Amazon Earnings: What Can Investors Expect?

Key Takeaways

  • Several Mag 7 members headline the reporting docket this week.
  • Guidance remains key for each stock's movement post-earnings.
  • AWS results are key for AMZN, whereas iPhone results are key for AAPL.

This week’s reporting docket is headlined by many notable companies, a list that includes beloved Mag 7 members Apple (AAPL - Free Report) and Amazon (AMZN - Free Report) .

Let’s take a closer look at what investors can expect from the titan duo.

Apple Revisions Remain Stable

Analysts have been primarily quiet concerning their EPS and sales revisions, with the $1.60 Zacks Consensus EPS estimate down just a penny since the beginning of February and suggesting 4.5% growth year-over-year. Sales revisions have also been stable, with the $93.6 billion expected suggesting 3.1% growth year-over-year.

As shown below, the company’s top line hasn’t seen much growth over recent years. Apple’s overall growth has been cooling for some time now, not really recognized as the growth machine it used to be.

Zacks Investment Research
Image Source: Zacks Investment Research

Key Apple Metrics to Watch

Keep a close eye on Apple’s China results, as revenue from the region has fallen short of our consensus estimates in six consecutive releases. The Zacks Consensus Estimate for China sales for the upcoming print stands at $16.3 billion, flat year-over-year relative to the $16.3 billion reported in the same period last year.

Zacks Investment Research
Image Source: Zacks Investment Research

As usual, the company’s iPhone results will be under heavy scrutiny. The iPhone remains the biggest top line contributor for Apple, accounting for nearly 50% of sales throughout its latest quarter.

The Zacks Consensus estimate for iPhone sales stands at $45.6 billion, reflecting a modest year-over-year decline from the year-ago figure of $45.9 billion. Below is a chart illustrating the company’s iPhone sales on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Amazon Revisions Show Bearishness

Analysts have shown some bearishness for AMZN’s upcoming release concerning headline figures, with both EPS and sales expectations moving lower over recent months. The company is expected to see 20% EPS growth on 8% higher sales.

Zacks Investment Research
Image Source: Zacks Investment Research

Key Amazon Metrics to Watch

Amazon’s cloud results will be in heavy focus due to Amazon Web Services (AWS). AWS is a dominant player in the cloud computing market, flexing a significant market share globally. It provides various services, including computing power, storage, databases, and AI/ML tools.

AWS results fell short of our consensus estimate in the prior period, reflecting the second consecutive miss. Our current expectation of $29.3 billion in sales for the metric reflects a 17% move higher year-over-year.

The results will likely see tailwinds from increasing adoption of AI-related tools, with the company regularly updating the product suite. Below is a chart illustrating Amazon’s AWS sales on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Beloved Apple (AAPL - Free Report) and Amazon (AMZN - Free Report) are gearing up to reveal their next set of quarterly results this week, with many other notable companies slated to report.

Commentary and guidance will be critical for Apple’s movement post-earnings. In addition to the iPhone’s new capabilities, investors should continue to keep a close eye on China results and momentum within its Services segment, with the former suppressing growth over recent periods and the latter supporting it.

Concerning Amazon, the focus will likely again be on its AWS results, a theme we’ve been accustomed to during the AI frenzy.


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