Apple's June quarter predicted to be 'neutral event' for stock price, 'good enough' for investors
Tuesday's earnings report from Apple is expected by Wall Street analysts to be essentially a non-event -- nothing serious enough to make the stock price jump, but also nothing negative enough to see shares slide significantly.
Previewing Apple's June quarter results, Gene Munster of Piper Jaffray told investors that low expectations will likely make the company's Tuesday earnings call a "largely neutral event." He believes Wall Street expects Apple to report an in-line June quarter, and to guide sales down about 5 percent for the following September quarter.
Separately, analyst Timothy Arcuri of Cowen and Company also issued a note forecasting "not great but good enough" June quarter earnings from Apple. He noted that while investors currently have a negative outlook, he sees that changing to "cautious optimism about the future."
Wall Street consensus, according to Piper Jaffray, sees Apple's June quarter revenue at $42.2 billion, with gross margins of 37.9 percent. The market expects Apple to have sold about 40 million iPhones, 9.1 million iPads, and 4.4 million Macs.
Looking forward to the September quarter, market consensus hopes to see Apple guide $46 billion in revenue and 38.3 percent gross margin. Expected iPhone sales for the quarter are at 43.1 million.
Piper Jaffray's own estimates for the June quarter are slightly above the market, projecting revenue of $42.3 billion and gross margins at 38 percent. Cowen and Company, meanwhile, is on the lower end with $41.8 billion in revenue.
Apple will report the results of its fiscal third quarter of 2016 on Tuesday after markets close. The company has scheduled a earnings call with analysts and members of the press for 2 p.m. Pacific, 5 p.m. Eastern, and AppleInsider will provide full, live coverage of the event.
Previewing Apple's June quarter results, Gene Munster of Piper Jaffray told investors that low expectations will likely make the company's Tuesday earnings call a "largely neutral event." He believes Wall Street expects Apple to report an in-line June quarter, and to guide sales down about 5 percent for the following September quarter.
Separately, analyst Timothy Arcuri of Cowen and Company also issued a note forecasting "not great but good enough" June quarter earnings from Apple. He noted that while investors currently have a negative outlook, he sees that changing to "cautious optimism about the future."
Wall Street consensus, according to Piper Jaffray, sees Apple's June quarter revenue at $42.2 billion, with gross margins of 37.9 percent. The market expects Apple to have sold about 40 million iPhones, 9.1 million iPads, and 4.4 million Macs.
Looking forward to the September quarter, market consensus hopes to see Apple guide $46 billion in revenue and 38.3 percent gross margin. Expected iPhone sales for the quarter are at 43.1 million.
Piper Jaffray's own estimates for the June quarter are slightly above the market, projecting revenue of $42.3 billion and gross margins at 38 percent. Cowen and Company, meanwhile, is on the lower end with $41.8 billion in revenue.
Apple will report the results of its fiscal third quarter of 2016 on Tuesday after markets close. The company has scheduled a earnings call with analysts and members of the press for 2 p.m. Pacific, 5 p.m. Eastern, and AppleInsider will provide full, live coverage of the event.
Comments
Perhaps when these large options traders get tired of single dollar movements they will move over to another name to trade.
i think it is less about "respect" and more about trading this stock because it IS a reliable money maker that always earns close to or better than its official forecasts. It is used widely as a backstop to all the other trading they do. All the big traders have to do is gin up another headline out of stale news, to aim the price where they want it for their options. There are so many doing it now that the stock won't move much. I wonder who is top dog and controls the most?
Wondering why the stock price is so low despite earnings is pointless. I'm hoping another name will supplant it, but am resigned to selling as little as possible until the car project gets going. Or I could just give up and try something else.
However, Apple has a great culture, enviable profits, and a bigger war chest than its competitors. Apple doesn't have to hit the ball out of the park every single quarter. I'm keeping the majority of my position in APPL. I think long term the company will continue to succeed.
Just st one investor's opinion.
That is worth lots to me.
http://blogs.barrons.com/techtraderdaily/2016/07/25/apple-sell-says-bgc-as-the-muse-has-gone-elsewhere-peak-tim-cook/?mod=yahoobarrons&ru=yahoo