It is predicted that Apple will report a decrease in revenue for the third consecutive quarter when it releases its financials on Thursday. Nevertheless, more significant than the results from the previous quarter will be Apple's outlook for the present quarter. As a Morgan Stanley analyst stated in July, "What will matter most will be management's September quarter."
Apple is projected to report a third consecutive quarterly revenue dip Thursday, with Wall Street estimating $81.7 billion in sales, or 2.3% less than the same period last year. Nonetheless, Apple shares have surged over 51% so far in 2023, reaching all-time highs, as investors continue to view the company as a safe haven due to its solid cash flow despite worries about waning consumer demand for products such as personal computers and smartphones.In addition, analysts are expecting to hear about how the current quarter -- which finishes in September -- is progressing. Apple has not provided guidance since 2020 due to uncertainty; though it does usually give investors a few pieces of information which can be used to gauge overall sales growth or contraction.The firm's outlook will be particularly significant, as it can potentially shed light on whether economies are headed for a “soft landing” following two years of rising interest rates. The June quarter is normally Apple’s weakest period of the year, while the fourth fiscal quarter generally records laptop expenditures for back-to-school season, a few days of fresh iPhone model sales (usually out in September) and the firm's momentum heading into the holiday season.Morgan Stanley's Erik Woodring said in July that “what will matter most will be management's September quarter” and he anticipates that Apple will offer guidance indicating year-over-year revenue growth once more.
Analysts are eager to hear about India sales from Apple CEO Tim Cook, who visited the country in April and expressed optimism about growth potential. Recent estimates show that it became one of the top five iPhone markets in the quarter. Tom Forte from D.A. Davidson noted that investors might look to the call for details regarding Apple's retail and manufacturing presence in India. Despite two consecutive quarters of revenue decline in the Greater China region - which includes Hong Kong and Taiwan and is Apple's third largest sales region - Harsh Kumar from Piper Sandler believes that the company has a solid footing in China and only a slight, if any, decline in iPhone sales is expected. He added that if Greater China is weak, it could be compensated by strong sales momentum in India. Investors will also be keen to learn if Apple has overcome supply chain issues that have been impeding sales for the last two years, and if they have stockpiled enough components to produce the necessary products to maintain their margins.
Wall Street hopes to witness the services division of Apple continue to increase in a steady and predictable fashion, taking into consideration that the profits from services are much higher than the sales of hardware. For instance, many experts desperately want to observe the services expand more than it has in the past few quarters as a consequence of struggling App Store sales. Apple proposed a 5% annual rise in services, and analysis from FactSet evaluated a lot more than $20.7 billion from revenue. Analysts will likely also inquire about artificial intelligence due to the world's pervasive interest in the technology and a current Bloomberg news stating that Apple has created a ChatGPT-like AI model inhouse. Investors should not anticipate Apple to fully explain the intricate details of their internal research, though. With the official introduction of Vision Pro, analysts appear to be expecting Apple to supply a higher-level description of its AI ambitions.
Analysts predict Apple's revenue will be $81.7 billion and earnings per share (EPS) to be $1.19 when they release their results. Estimates from FactSet suggest iPhone, iPad, and Mac sales are all likely to have decreased annually, with iPad sales dropping by almost 11%. Wearables, which encompasses headphones, Apple Watch, and what will probably be the Vision Pro when made available, is estimated to have dipped lower than 1%. Although, analysts anticipate the company's services sector to grow 5.2% year-on-year, making it the one positive part of the report. FactSet projections for Apple's product lines include: iPhone, $40.2 billion; iPad, $6.4 billion; Mac, $6.3 billion; other products, $8.3 billion; and services, $20.7 billion.
Commentaires