What to expect in Apple's fiscal third quarter earnings report
With the quarterly earnings scheduled for this evening, most of the analysts on the Apple beat see another quarter of significant growth year-over-year for the company, for the reasons that you may expect. And, those same analysts are looking ahead to the next two quarters already.
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Apple is set to announce its third-quarter earnings on late Tuesday, and ahead of the release, analysts have chimed in on what they are expecting to see from Apple for the last quarter, and the one to come.
According to the estimates, collated by Philip Elmer-DeWitt, the consensus is that Apple will post 37 percent EPS growth in the third quarter. That performance would mark Apple's largest increase in percent since the fourth quarter of 2015.
The survey, of hundreds of analysts, also predicted 26 percent growth in the fourth quarter. Apple showed 30 percent EPS growth in the second quarter.
A separate survey of 17 analysts, also collected by Elmer-DeWitt, predicted that Apple will have sold 42.05 million iPhones in the third quarter.
The analysts -- 10 on Wall Street and seven independent -- forecasted a range between 39.8 million and 43.3 million in sales volume for iPhones. The reports were collected as early as January and as recently as July 24.
Apple's iPad is expected to glean about 11.8 million -- but Wall Street consensus missed iPad sales increases last quarter by a healthy margin.
Ahead of the 2017 Q3 earnings announcement last July, analysts polled by CNBC predicted Apple would announce they had sold 40.7 million iPhones, and $25.52 billion in iPhone revenue. The actual number was just over 41 million, with $24.8 billion in revenue.
Another roundup of analysts ahead of earnings a year ago, by Investors Business Daily, predicted sales that quarter of $44.89 billion with Apple actually posting $45.4 billion. Prior to those earnings, many analysts saw that quarter as a lull prior to the arrival of last year's iPhone 8 and iPhone X.
Meanwhile, Apple sold 52.2 million iPhones in the second quarter of 2018. Sales numbers and earnings are typically lower in the third quarter prior to the arrival of new iPhones.
Apple is set to announce its third-quarter earnings on late Tuesday, and ahead of the release, analysts have chimed in on what they are expecting to see from Apple for the last quarter, and the one to come.
According to the estimates, collated by Philip Elmer-DeWitt, the consensus is that Apple will post 37 percent EPS growth in the third quarter. That performance would mark Apple's largest increase in percent since the fourth quarter of 2015.
The survey, of hundreds of analysts, also predicted 26 percent growth in the fourth quarter. Apple showed 30 percent EPS growth in the second quarter.
A separate survey of 17 analysts, also collected by Elmer-DeWitt, predicted that Apple will have sold 42.05 million iPhones in the third quarter.
The analysts -- 10 on Wall Street and seven independent -- forecasted a range between 39.8 million and 43.3 million in sales volume for iPhones. The reports were collected as early as January and as recently as July 24.
Apple's iPad is expected to glean about 11.8 million -- but Wall Street consensus missed iPad sales increases last quarter by a healthy margin.
Ahead of the 2017 Q3 earnings announcement last July, analysts polled by CNBC predicted Apple would announce they had sold 40.7 million iPhones, and $25.52 billion in iPhone revenue. The actual number was just over 41 million, with $24.8 billion in revenue.
Another roundup of analysts ahead of earnings a year ago, by Investors Business Daily, predicted sales that quarter of $44.89 billion with Apple actually posting $45.4 billion. Prior to those earnings, many analysts saw that quarter as a lull prior to the arrival of last year's iPhone 8 and iPhone X.
Meanwhile, Apple sold 52.2 million iPhones in the second quarter of 2018. Sales numbers and earnings are typically lower in the third quarter prior to the arrival of new iPhones.
Comments
Where is the 37% earnings growth coming from?
I'm seeing an estimated YoY growth of approx 2% in units from the graphs that load.
This time, you get to figure it out yourself.
I'll give you a hint. Apple states the necessary data to understand this every, single, time, that they give their financials.
Good luck!
iPhone SE 11.4
Maybe Chrome is shielding me from that!
RacerHomie3 says the app is not showing 70% of the article but I'm on the web.
Here's a link to services;
https://www.ped30.com/2018/07/25/apple-services-q3-2018/
Revenue for iPhones is up year on year from higher ASP, average selling price, even if units sales hasn't risen much.
There is a block of links but when in portrait orientation, Chrome lights up the entire text and takes me to the first link in the block making it seem like there is only one link in the block.
However, when in landscape orientation only the text of each link lights up, indicating that there are other links in the block.
I find it curious you assume the only reason revenues are up is because of higher prices. What about higher unit sales? Increased services revenue? Reduced manufacturing costs due to economies of scale?
No, lets make the erroneous claim it’s all due to Apple raising prices.
Apple has accumulated more than 250 billion in cash over the last decade. Most of it sits unused. I don't see the consumer getting a good deal out of that. Other companies have been wildly successful for equally long without accumulating such a cash hoard and provide equally good products and services, if not better.
Bullshit.