Earnings preview: Apple's Sept. quarter results are all about iPhone for Wall Street
This afternoon after markets close, Apple is set to announce its earnings for the recently concluded September quarter. But analysts are mostly interested in any comments the company may have about improving iPhone 5s production, as well as sales of the iPhone 5c.
Apple's two new iPhone models launched with just over a week left in the September quarter. Even with that small window of availability, the devices will still have an effect on the quarter, as Apple managed to sell 9 million units in their first three days of availability.
In terms of overall financials, analysts polled by Thomson Reuters expect on average that Apple will report earnings per share of $7.93, on revenue of $36.84 billion for the quarter. That would represent 2.4 percent year over year growth in sales.
For actual unit sales, Wall Street expects Apple to have sold 31 million iPhones in the September quarter, according to 20 buy-side investor expectations polled by Gene Munster of Piper Jaffray. iPad sales are expected to be at 14.5 million, and Mac sales at 4.6 million, with gross margins around 37 percent.
Apple already revised its guidance following the iPhone launch in late September, saying to investors that it expects gross margins of between 36 and 37 percent. With expectations recently revised, investors will be focusing on iPhone 5c demand for mid-range and international markets, as well as potential easing of iPhone 5s constraints, analyst Brian Marshall of ISI Group believes.
Looking ahead to the current December quarter, Munster believes that Apple will provide gross margin guidance at between 37 and 38 percent, which would be an increase of 50 basis points from September. That would represent the first sequential increase in gross margin for the company in the last six quarters.
Apple's December quarter will represent the first full three-month span for iPhone 5s and iPhone 5c sales. It will also include the debut of the new iPad Air and iPad mini with Retina display, both of which analysts expect will help improve Apple's margins.
Apple is set to report its September quarter results after markets close this afternoon. A conference call with analysts and members of the press will follow at 2 p.m. Pacific, 5 p.m. Eastern. AppleInsider will have full, live coverage.
Apple's two new iPhone models launched with just over a week left in the September quarter. Even with that small window of availability, the devices will still have an effect on the quarter, as Apple managed to sell 9 million units in their first three days of availability.
In terms of overall financials, analysts polled by Thomson Reuters expect on average that Apple will report earnings per share of $7.93, on revenue of $36.84 billion for the quarter. That would represent 2.4 percent year over year growth in sales.
Wall Street expects sales of 31 million iPhones, 14.5 million iPads, and 4.6 million Macs for the quarter.
For actual unit sales, Wall Street expects Apple to have sold 31 million iPhones in the September quarter, according to 20 buy-side investor expectations polled by Gene Munster of Piper Jaffray. iPad sales are expected to be at 14.5 million, and Mac sales at 4.6 million, with gross margins around 37 percent.
Apple already revised its guidance following the iPhone launch in late September, saying to investors that it expects gross margins of between 36 and 37 percent. With expectations recently revised, investors will be focusing on iPhone 5c demand for mid-range and international markets, as well as potential easing of iPhone 5s constraints, analyst Brian Marshall of ISI Group believes.
Looking ahead to the current December quarter, Munster believes that Apple will provide gross margin guidance at between 37 and 38 percent, which would be an increase of 50 basis points from September. That would represent the first sequential increase in gross margin for the company in the last six quarters.
Apple's December quarter will represent the first full three-month span for iPhone 5s and iPhone 5c sales. It will also include the debut of the new iPad Air and iPad mini with Retina display, both of which analysts expect will help improve Apple's margins.
Apple is set to report its September quarter results after markets close this afternoon. A conference call with analysts and members of the press will follow at 2 p.m. Pacific, 5 p.m. Eastern. AppleInsider will have full, live coverage.
Comments
How old are u ?
I hear you. If like us, you bought a long time ago it isn't quite as worrying as those that got on board in the 400+ range. I do feel for those folks.
I hear you. If like us, you bought a long time ago it isn't quite as worrying as those that got on board in the 400+ range. I do feel for those folks.
Don't you mean 500+?
Lets see, Estimates of 5 trillion Iphones sold for the quarter with profits of$150 Trillion! Anything less, and AAPL is Doomed! Got this from supply chain analysis.
Don't you mean 500+?
Or $600+?
Anyone have a chart of what AAPL does after earning reports? My gut tells me it drops - if they exceed expectations then the stories go "The gas has run out! Apple can't do any better! This is the peak!" If they miss expectations the stories go "Apple falters! Heading into a downward spiral!"
If you're long AAPL it's just froth. But it could be a buying opportunity.
Forbes is guessing the price will rise.
- Jasen.
Lot of Bulltards all across the stock boards makes me think, this stock can tank despite the beat
Its a win-win situation for bulls no matter what the stock does. If it falls, buy more
When are Apple's results ever not about iPhones these days?
Exactly, the fact the analysis are only focused on 1 product at Apple show they are one dimensional. They can not see the bigger picture. They keep saying Apple is not innovating, but they can not see to see past the end of their nose. The should be focusing on the ipad since that is will apple is killing the competitors and asking the competitors what the are going to do since Apple is killing them.
Exactly, the fact the analysis are only focused on 1 product at Apple show they are one dimensional. They can not see the bigger picture. They keep saying Apple is not innovating, but they can not see to see past the end of their nose. The should be focusing on the ipad since that is will apple is killing the competitors and asking the competitors what the are going to do since Apple is killing them.
iPad?
Really?
Everything we hear lately is that iPad sales are flat yoy and that share is dropping.
Too much weight on iPad sales and AAPL will tank.
A heart beating day for me , holding 415 shares of Apple.
If you are holding long term, you shouldn't be sweating it. If you are day trading, you shouldn't be sweating it either, you just need to be executing your strategy.
Apple has been doing well and if they keep this up, even the Analyst are not going to be able to talk the stock down.
They speculate on what should be and if the numbers don't pan out Wall Street starts talking about regime change and other BS.
It is about consumers. They are the ones that have put 147 billion CASH in Apple's bank accounts. Not the Wall Street pimps.
Interestingly, the consumers can be seen as a printing press due their spending. Conversely WS doesn't have a goddamn printing press. But they constantly write checks their ass can't cash.
Apple needs to go private, IMHO.
4.6 million Macs seems a little too ambitious, though.
Apple still makes computers?
Even then - Apple will be doomed because the analysts will be certain Apple won't be able to exceed it the next quarter.
Don't underestimate the power of ignorance -- it knows no bounds.