Apple Earnings: iPhone, Services Sales and China in Focus Ahead of Key Report
Following the recent Fed decision, the spotlight now shifts to Apple (NASDAQ:AAPL) as the tech giant gears up to release its earnings report after the market closes today. This highly anticipated report is poised to be one of the most significant ones in this earnings season.
This release occurs in a backdrop where several technology giants, including Meta Platforms (NASDAQ:META), Amazon.com (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL), have recently unveiled better-than-expected financial results. However, in some instances, these favorable figures did not translate into immediate stock price gains.
After two consecutive quarters of declining revenues and earnings, the consensus forecasts sales of $89.41 billion, up 9.2% quarter-on-quarter (and down 0.8% year-on-year), and EPS of 1.39, up 10.3% on the previous quarter (and 7.7% year-on-year).
Source: InvestingPro
It is also interesting to note that EPS forecasts for Apple's results have been the subject of 18 bullish analyst revisions in the last 90 days, and only 6 bearish revisions, according to data available on the InvestingPro platform.
Last quarter, Apple exceeded EPS expectations by 5.5% but only matched revenue forecasts.
Source: InvestingPro
In order to properly approach the event, it should also be noted that in recent years, Apple has often exceeded expectations in terms of EPS, while the record is less clear on revenues.
Source: InvestingPro
As can be seen from the image above taken from InvestingPro, over the last 7 quarters, Apple has exceeded EPS expectations 6 times, while it has surpassed revenue forecasts only 4 times. On the other hand, we note that revenue overruns are, on average, much larger than misses.
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