Tim Cook, Apple CEO, speaks during an Apple event on April 20, 2021.
Source: Apple Inc.
Apple reports its fiscal second quarter results on Wednesday after markets close.
According to Refinitive Consensus Estimates, Wall Street expects:
- Merits: 99 cents per share
- revenue: $ 77.36 billion
The company has had its biggest quarter to date, with sales and strong growth across each of its product lines. Apple’s business is cyclical, however, and the second quarter that ends in March is usually much smaller in sequence than the vacation quarter.
Still, analysts expect Apple to post strong numbers, fueled by global demand for PCs, tablets, and other computers. Analysts surveyed by Refinitiv, on average, expect Apple’s earnings per share to grow 54.8% year over year and revenue to grow 32.7%.
This quarter, some analysts are more interested in Apple’s entire line of products. They’ll also be interested in comments on the company’s success in selling its Mac laptops and iPads to companies that need computers for employees.
However, some analysts are still concerned about the possibility of a major upgrade cycle for the iPhone failing to materialize and the first signs of weaker demand appearing this quarter.
“In our opinion, the current high demand for iPad and Mac is unlikely to be sustainable as the world opens up again. One more blow, more driven by these areas, may not be enough to propel stocks any further.” wrote Rod Hall, an analyst at Goldman Sachs.
Investors will also keep a close eye on how much money Apple is spending on share buybacks or dividends. Apple’s second quarter is usually when its plans for the year are announced. Apple has announced that it will continue its buybacks and dividends until cash equals debt.
“We expect another $ 50 billion approval, similar to last year, and a high single-digit percentage increase in dividends,” JPMorgan analyst Samik Chatterjee said in a statement this week.
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