What can we expect? From Applei do you earn?

What can we expect? From Applei do you earn?

Earnings Preview
Apple is expected to report EPS of $1.01 on revenues of $72.93 billion. Meanwhile, the Earnings Whisper number, or the Street’s unofficial view on earnings, stands at $1.17 per share.

Apple (NASDAQ: AAPL) is scheduled to report fiscal third-quarter 2021 earnings on July 27 after the market closes. Over the past year, shares of the world’s largest tech giant in terms of revenue have jumped 58% and are currently trading at over $146. A strong print could push shares higher, so let’s take a closer look at what analysts on the Street are expecting.

Highlights

  • Factors To Watch Out For
    Through its five software platforms, iOS, iPadOS, macOS, watchOS, and tvOS, Apple provides unmatched experiences across all its devices and empowers people with advanced services including the App Store, Apple Music, Apple Pay, and iCloud.

  • Prior Period Results
    In the previous quarter, the company reported earnings of $1.40 per share, which more than doubled compared to the prior year’s quarter and outpaced the consensus estimate of $0.98. Also, revenue rose 54% to $89.6 billion and topped analysts’ expectations of $77.01 billion. (See Apple stock charts on TipRanks)

Notably, sales of iPhone, Mac, and iPad, along with wearables, home, and accessories (mainly Airpods, Apple TV, Apple Watch), are approaching record highs. Furthermore, services net sales from advertising, AppleCare, and digital content including Maps, Siri, free iCloud storage, and Apple TV+ services are booming.

Apple’s products and services revenue outperformed during the March-end quarter and aided overall earnings growth. The same trend is likely to continue in the fiscal third quarter on flourishing iPhone demand, continued Apple services momentum, and strong wearables growth.

The Apple iPhone is the company’s premium product and contributes more than 50% of total revenues. Markedly, device sales rose 66% year-over-year to $47.9 billion in the last quarter. Therefore, top-line growth in the third quarter is likely to have been driven by strong demand for the 5G-enabled iPhones, despite rising competition in the smartphone space.