Apple to reveal fiscal Q1 2017 results on Jan. 31

AppleInsider

Apple on Wednesday announced it will on Jan. 31 report quarterly earnings for the first fiscal quarter of 2017, revealing performance metrics for the new iPhone 7 series and the lucrative holiday shopping season.

Announced through the company's Investor Relations webpage, the upcoming results will be followed by a conference call live stream set to take place on Tuesday, Jan. 31 at 2 p.m. Pacific, 5 p.m. Eastern. Apple CEO Tim Cook and CFO Luca Maestri are expected to take part in the conference call.

For its first fiscal quarter, Apple is looking build on last quarter's Wall Street beat with new iPhone 7 handset sales and a growing services business. During the most recent quarter, Apple posted $9 billion in net income on revenues of $46.9 billion, a large portion of which was generated by 45.5 million iPhone sales.

The company is slowly rebuilding from a first ever iPhone sales contraction that punctuated a dismal second fiscal quarter last year. In the ensuing months, Apple leaned on revenues from its services sector, which includes Apple Music, iCloud, iTunes and the various App Stores, as well as unexpectedly strong demand for the 4-inch iPhone SE. Interestingly, iPad helped make up for a portion of lost iPhone growth after suffering a slow decay over the past couple years.

Apple is guiding for all-time record revenues between $76 billion and $78 billion, and gross margin between 38 percent and 38.5 percent for the first quarter of 2017. Operating expenses are expected to fall between $6.9 billion and $7 billion, with other income of $400 million. The company expects a tax rate of 26 percent.

AppleInsider will be covering Apple's conference call for the first fiscal quarter of 2017 live on Tuesday, Jan. 31, starting at 2 p.m. Pacific, 5 p.m. Eastern.

red oak

Potentially the most profitable quarter ever for a company.  But doubt and worry will rain on Apple like a Thailand monsoon

I would love to see Apple give WS the finger and buy back $200B in stock.  40% of the company effectively taken off the market.  A complete pipe dream I know.   But what a ballsy move that would be  

cali

I predict Apple will sell 100 million iPhones. If they miss that mark THEY'RE DOOMED!!!!!!

eightzero

cali said:

I predict Apple will sell 100 million iPhones. If they miss that mark THEY'RE DOOMED!!!!!!

My prediction: they will sell millions of units and make billions of dollars. PM me for the mailing address for my consulting fee. 

anantksundaram

red oak said:

Potentially the most profitable quarter ever for a company.  But doubt and worry will rain on Apple like a Thailand monsoon

I would love to see Apple give WS the finger and buy back $200B in stock.  40% of the company effectively taken off the market.  A complete pipe dream I know.   But what a ballsy move that would be  

That would be a ballsy move, for sure.

But it would be a financially stupid move since they would -- at the moment -- have to pay all of the incremental US taxes owed. Using money held abroad to repurchase shares at home would be a "deemed repatriation" for tax purposes.

edited January 2017

mike1

"The company is slowly rebuilding from a first ever iPhone sales contraction that punctuated a dismal second fiscal quarter last year" Lots of companies could only hope for such "dismal" financial performance.

red oak

anantksundaram said:

red oak said:

Potentially the most profitable quarter ever for a company.  But doubt and worry will rain on Apple like a Thailand monsoon

I would love to see Apple give WS the finger and buy back $200B in stock.  40% of the company effectively taken off the market.  A complete pipe dream I know.   But what a ballsy move that would be  

That would be a ballsy move, for sure.

But it would be a financially stupid move since they would -- at the moment -- have to pay all of the incremental US taxes owed. Using money held abroad to repurchase shares at home would be a "deemed repatriation" for tax purposes.

Your right.  I meant to add only if a 10% tax holiday goes through.  If yes, Apple is going to be drowning in  cash 

avon b7

I wonder if these results will include an 18 billion dollar charge for the Irish tax issue? The original claim, plus interest?

foggyhill

avon b7 said:

I wonder if these results will include an 18 billion dollar charge for the Irish tax issue? The original claim, plus interest?

Won't take that charge until they have too, its still going through the courts isn't it?

avon b7

foggyhill said:

avon b7 said:

I wonder if these results will include an 18 billion dollar charge for the Irish tax issue? The original claim, plus interest?

Won't take that charge until they have too, its still going through the courts isn't it?

The appeals have been presented but I think the actual amount claimed is normally paid over and held in waiting until a ruling is reached or it is taken into account on a purely accounting level. I don't know what the exact procedure is but it makes sense for Apple to start provisioning in case of a worst case scenario.

hydrogen

avon b7 said:

<...>  but it makes sense for Apple to start provisioning in case of a worst case scenario.

and hence reduce the profit, and therefore the taxes !

carnegie

avon b7 said:

I wonder if these results will include an 18 billion dollar charge for the Irish tax issue? The original claim, plus interest?

No, Apple won't take such a large charge relating to that issue. That is likely in part because at this point Apple doesn't consider it probable that it will end up having to pay those additional Irish taxes.

Apple will no doubt refer to the situation in its SEC filing as part of its discussion of risk factors. Apple, and public companies in general, do that with regard to various things which could affect their earnings in the future - e.g., changes in market conditions, market competition, changes in tax laws, unfavorable tax interpretations, judgments entered against them. And Apple has been mentioning this particular situation, as something that could possibly affect its financial results, in its SEC filings for a while.