Apple has a chance to give investors another reason to keep Apple's bullish streak when it reports earnings after closing markets on Tuesday. Apple shares have risen 15% in the last three months, boosted by a massive capital return program announced in April.
In its fiscal third quarter earnings, covering the three months ending in June, Apple will unveil the iPhones it launched in September in September, enjoying sustained demand or whether the more expensive $ 1000 iPhone X fizzled in the slow season after last year's very important holiday quarter. Generally, Apple's spring quarter is the slowest in terms of sales and iPhone sales.
"Our controls indicate that demand for iPhone 8 and 8 Plus stays seasonal while iPhone X inventory has normalized and older models continue to work well in emerging markets," wrote Citi analyst Jim Suva earlier this month.
Wall Street is looking for Apple to report revenue of $ 52.3 billion, an increase of 1
5% year-on-year and a $ 2.16 earnings per share.
But investors will also keep track of comments and details buried in the report that may indicate where Apple is going, especially in the fall when it is expected to launch new iPhones.
This is what Wall Street is looking for:
Given that iPhone is the majority of Apple's revenue, investors only want to know how many iPhones were sent and the average price they were sold for.
Even a slight difference in that number can change Apple's earnings from a good day to a bad day for the stock.
Morgan Stanley Katy Huberty, for example, expects Apple to say that it sent 39.8 million iPhones in June quarter, under the consensus estimate of about 41.8 million iPhones sent.