Wall Street expects $76.5B in revenue from Apple in record breaking holiday quarter

AppleInsiderAppleInsider
Posted:
in AAPL Investors
Apple this afternoon is expected to reveal that it just concluded its biggest quarter in the company's history, with Wall Street watchers projecting an average of $76.5 billion in revenue from the holiday period.




Market consensus numbers shared this week by J.P. Morgan call for Apple's gross margins to be at 39.9 percent, with earnings per share projected at $3.23. Analyst Rod Hall's own predictions are largely in line with the market, calling for revenue of $76.7 billion, gross margins at 39.8 percent, and EPS of $3.25.

If those numbers prove accurate, they would best Apple's previous all-time record, achieved in the holiday 2014 quarter. For that December frame, Apple posted quarterly revenue of $74.6 billion, with net profits of $18.9 billion.

Hall believes Apple sold about 76 million iPhones in its first quarter of fiscal 2016. He believes buy-side expectations on Wall Street are that iPhone unit sales will be in the "low 70s."

The key number is 74.5 million -- that's how many iPhones Apple sold in the same quarter of last year. If Apple can beat that number, then it will continue its trend of growing iPhone sales with every new model since the product line debuted in 2007.

Apple's own guidance for the December 2015 quarter projected revenue between $75.5 billion and $77.5 billion, with gross margins between 39 and 40 percent. That means Wall Street expectations are squarely in the middle of Apple's own guidance.

The results of Apple's holiday quarter will be revealed Tuesday afternoon, after markets close at 4 p.m. Eastern. A conference call with Apple Chief Executive Tim Cook and Chief Financial Officer Luca Maestri will follow at 5 p.m. Eastern, 2 p.m. Pacific, and AppleInsider will have full, live coverage.
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Comments

  • Reply 1 of 64
    jbdragonjbdragon Posts: 2,311member
    Wait, I thought all these people were saying Apple sales were going to be disappointing. I'm a little confused. Now just before Apple's report, they're singing a different tune? Is this more stock manipulation?
    palomineanton zuykov
  • Reply 1 of 64
    msanttimsantti Posts: 1,377member
    Stock will still tank regardless.

    Earning 76 billion just ain't enough these days.

    Well, not for Apple anyways.
    palomineanton zuykov
  • Reply 3 of 64
    williamhwilliamh Posts: 1,034member
    jbdragon said:
    Wait, I thought all these people were saying Apple sales were going to be disappointing. I'm a little confused. Now just before Apple's report, they're singing a different tune? Is this more stock manipulation?
    Actually, their best quarter ever is still considered "disappointing."  Analysts are looking for growth, not incremental improvement and most of all they want a good outlook. 
  • Reply 4 of 64
    gatorguygatorguy Posts: 24,213member
    jbdragon said:
    Wait, I thought all these people were saying Apple sales were going to be disappointing. I'm a little confused. Now just before Apple's report, they're singing a different tune? Is this more stock manipulation?
    It was never about the currently reporting quarter. It's the next one that been under the microscope. Some posters here just misunderstood it. 
    latifbpteejay2012
  • Reply 5 of 64
    josujosu Posts: 217member
    Today is the "facts day" what investors do with the information is up to themselves. But if they are better than expected, as I think, there will not be a stock dive this time. The stock is so ingrained with fears that any positive uptick must turn investors in their senses, and it will go up. In the previous quarter happens the same, Market fears where proved wrong by results and market and analysts reacted with common sense.
    edited January 2016
  • Reply 6 of 64
    rogifan_oldrogifan_old Posts: 725member
    Today must be the lets pile on Apple day. I've seen 3 stories posted in MarketWatch that are anti-Apple. Reuters and USA Today have doomsday articles about iPhone and Reuters posted a negative Watch story quoting DigiTimes. I can't remember an American company that has received as much negative press from the American media as Apple has. Shameful.
    palomineteejay2012lkruppcornchipcali
  • Reply 7 of 64
    flaneurflaneur Posts: 4,526member
    Schizophrenic Morning Report from Marketplace today, the most smart-ass dumb financial site on the airwaves: "Has Apple stopped playing with the cool kids of tech?" The premise is that analysts are worried that supply-chain cutbacks indicate peak iPhone has been reached and AAPL is no longer a growth but now a value stock, etc. Not a word to indicate that analysts have a contageous brain inflammation caused by shrieking, hysterical fear of a successful American company they can't understand.

    http://www.marketplace.org/shows/marketplace-morning-report/marketplace-morning-report-tuesday-january-26-2016
    edited January 2016 palomineJanNLteejay2012cornchippscooter63
  • Reply 7 of 64
    steviestevie Posts: 956member
    No matter how many trillions of dollars Apple funnels to Wall Street billionaires, it is never enough.

    Wall Street seems to think that Apple's very purpose is to make more and more profits all the time.

    Apple should just pay a huge dividend and be done with it.  Yeah, it would make Wall Street even richer, but then Apple stock will go up again.  




    edited January 2016
  • Reply 9 of 64
    rogifan_oldrogifan_old Posts: 725member
    gatorguy said:
    jbdragon said:
    Wait, I thought all these people were saying Apple sales were going to be disappointing. I'm a little confused. Now just before Apple's report, they're singing a different tune? Is this more stock manipulation?
    It was never about the currently reporting quarter. It's the next one that been under the microscope. Some posters here just misunderstood it. 
    And if March guidance doesn't follow the meme that's been set then the focus will shift to June as if the concerns about March never existed.
  • Reply 10 of 64
    eightzeroeightzero Posts: 3,069member
    Another record quarter, with all these billions to be reported, profits and sales up, and yet Tim Cook does nothing. 
    palominebrucemccornchipcali
  • Reply 11 of 64
    sflagelsflagel Posts: 805member
    rogifan_old said:
    Today must be the lets pile on Apple day. I've seen 3 stories posted in MarketWatch that are anti-Apple. Reuters and USA Today have doomsday articles about iPhone and Reuters posted a negative Watch story quoting DigiTimes. I can't remember an American company that has received as much negative press from the American media as Apple has. Shameful.
    Who cares.? it is just a stock. And like all shares, the calculation is simple: is (EPS+Growth) / Price = an acceptable return? If yes, then Price goes up, if too low, then Price goes down.Whether the firm producing these numbers is Apple or Urban Outfitters does not matter. Personally, I think a EPS Yield of 9%+ is a lot, but not if the money cannot be repatriated. So I assume analysts are measuring Domestic EPS only.
  • Reply 12 of 64
    jfc1138jfc1138 Posts: 3,090member
    gatorguy said:
    jbdragon said:
    Wait, I thought all these people were saying Apple sales were going to be disappointing. I'm a little confused. Now just before Apple's report, they're singing a different tune? Is this more stock manipulation?
    It was never about the currently reporting quarter. It's the next one that been under the microscope. Some posters here just misunderstood it. 
    Oh it was about the Holiday quarter right up until Cook projected that one was going to be a YoY gain (the entire "tough comparison meme). THEN the whiners shifted to March..... and they'll certainly rinse repeat were he to project gains YoY for that quarter....
    cornchipcali
  • Reply 13 of 64
    jfc1138jfc1138 Posts: 3,090member

    rogifan_old said:
    Today must be the lets pile on Apple day. I've seen 3 stories posted in MarketWatch that are anti-Apple. Reuters and USA Today have doomsday articles about iPhone and Reuters posted a negative Watch story quoting DigiTimes. I can't remember an American company that has received as much negative press from the American media as Apple has. Shameful.
    USA Today has some resident writers (a "Katz"??) that seem to live off negative hysteria (and the reluctant clicks) about Apple.
  • Reply 14 of 64
    josujosu Posts: 217member
    flaneur said:
    Schizophrenic Morning Report from Marketplace today, the most smart-ass dumb financial site on the airwaves: "Has Apple stopped playing with the cool kids of tech?" The premise is that analysts are worried that supply-chain cutbacks indicate peak iPhone has been reached and AAPL is no longer a growth but now a value stock, etc. Not a word to indicate that analysts have a contageous brain inflammation caused by shrieking, hysterical fear of a successful American company they can't understand.
    In late 2012 it was the same history, proved wrong by time.
    cornchip
  • Reply 15 of 64
    josujosu Posts: 217member

    sflagel said:
    rogifan_old said:
    Today must be the lets pile on Apple day. I've seen 3 stories posted in MarketWatch that are anti-Apple. Reuters and USA Today have doomsday articles about iPhone and Reuters posted a negative Watch story quoting DigiTimes. I can't remember an American company that has received as much negative press from the American media as Apple has. Shameful.
    Who cares.? it is just a stock. And like all shares, the calculation is simple: is (EPS+Growth) / Price = an acceptable return? If yes, then Price goes up, if too low, then Price goes down.Whether the firm producing these numbers is Apple or Urban Outfitters does not matter. Personally, I think a EPS Yield of 9%+ is a lot, but not if the money cannot be repatriated. So I assume analysts are measuring Domestic EPS only.
    No. they are measuring all EPS, if that they don't have to count the sales overseas of EVERY company in the US.
  • Reply 16 of 64
    josujosu Posts: 217member
    My bet is that they will beat the market consensus, because they will beat their own guidance, they have ever did, Even in FQ1 2013 where market was betting about stagnation, and profits decline for the fiscal year they beat their own guidance 52 Billion vs. 54,5 billion real sales.
  • Reply 17 of 64
    gatorguygatorguy Posts: 24,213member
    jfc1138 said:
    gatorguy said:
    jbdragon said:
    Wait, I thought all these people were saying Apple sales were going to be disappointing. I'm a little confused. Now just before Apple's report, they're singing a different tune? Is this more stock manipulation?
    It was never about the currently reporting quarter. It's the next one that been under the microscope. Some posters here just misunderstood it. 
    Oh it was about the Holiday quarter right up until Cook projected that one was going to be a YoY gain (the entire "tough comparison meme). THEN the whiners shifted to March..... and they'll certainly rinse repeat were he to project gains YoY for that quarter....
    Nope. This one was already done before the supposed/rumored/maybe supplier cuts became news. 
  • Reply 18 of 64
    oldmacguyoldmacguy Posts: 151member
    Apple is doomed. I just bought an iPhone, and I'm always the last man on earth to adapt to new stuff. 
    stompy
  • Reply 19 of 64
    gatorguygatorguy Posts: 24,213member

    sog35 said:
    gatorguy said:
    jbdragon said:
    Wait, I thought all these people were saying Apple sales were going to be disappointing. I'm a little confused. Now just before Apple's report, they're singing a different tune? Is this more stock manipulation?
    It was never about the currently reporting quarter. It's the next one that been under the microscope. Some posters here just misunderstood it. 
    WTF.  That's EXACTLY what they said last quarter.  They said the Sept Quarter was not important even though they showed 25% profit growth. All that matter was Dec quarter results. And now that Apple will report a great December quarter they will say ignore December and look to March.

    This is the same bullshit every single quarter.

    1. Wall Street says current quarter will be weak based on supply checks
    2. Apple reports a strong quarter.
    3. Wall Street says current quarter is not important, what is important is next quarter
    4. Repeat Step 1
    Wait for Apple projections for the next quarter, expected in just the next few hours. That will tell you something you can probably rely on. 
    edited January 2016
  • Reply 20 of 64
    williamhwilliamh Posts: 1,034member
    stevie said:
    No matter how many trillions of dollars Apple funnels to Wall Street billionaires, it is never enough.

    Wall Street seems to think that Apple's very purpose is to make more and more profits all the time.

    Apple should just pay a huge dividend and be done with it.  Yeah, it would make Wall Street even richer, but then Apple stock will go up again.  




    For investors, Apple's very purpose is to make more profits all the time. For what other reason do they invest?
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