Apple Expected to Report Its Best Fourth Quarter Ever Today Following iPhone XS and iPhone XS Max Launch

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Nov 1, 2018.

  1. MacRumors macrumors bot

    MacRumors

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    Apple is set to report its earnings results for the fourth quarter of its 2018 fiscal year at 1:30 p.m. Pacific Time today.

    The quarter began July 1, 2018 and ran through September 29, 2018, according to Apple's fiscal year accounting calendar.

    Apple provided the following guidance for the quarter back on July 31:revenue of $60 billion to $62 billion
    gross margin between 38 and 38.5 percent
    op. ex. of $7.95 billion to $8.05 billion
    other income/expense of $300 million
    tax rate of approximately 15 percent before discrete itemsApple's guidance suggests it will report its best fourth quarter results ever, by revenue, comfortably topping its 2017 record of $52.6 billion:
    2014: $42.1 billion
    2015: $51.5 billion
    2016: $46.9 billion
    2017: $52.6 billion
    2018: $60+ billion
    Wall Street analysts forecast that Apple will report $61.5 billion revenue, above the midpoint of its guidance, and earnings per share of $2.78, according to 32 estimates averaged by Yahoo Finance.

    Key Takeaways and What to Look For
    iPhone unit sales of around 47.5 million, according to a FactSet estimate. Apple began accepting iPhone XS and iPhone XS Max pre-orders September 14, just over two weeks before Apple's fourth quarter ended. Apple sold 46.7 million iPhones in the year-ago quarter.
    Apple doesn't break out iPhone sales on a model-by-model basis, but the iPhone's average selling price should reveal whether customers are leaning towards higher-priced iPhones such as the iPhone XS Max. iPhone ASP was $617.99 in the year-ago quarter.
    Mac unit sales should be boosted by 2018 MacBook Pro models, released on July 12, nearly two weeks into the quarter. Apple sold 3.72 million Macs last quarter, its fewest in any single quarter since the third quarter of 2010, due to seasonality and a largely outdated lineup. Mac sales totaled 5.39 million in the year-ago quarter.
    Apple's guidance for its first quarter of fiscal 2019, which began September 30 and encompasses the launch of the iPhone XR and the new iPad Pro, MacBook Air, and Mac mini models. Analysts expect record revenue of $92.9 billion, based on 31 estimates averaged by Yahoo Finance.
    Continued growth of Apple's Services category, including the App Store, Apple Music, iCloud, iTunes, Apple Pay, and AppleCare. Last quarter, Apple's services brought in a record $9.5 billion revenue. Apple said it is still on target to double its fiscal 2016 services revenue by fiscal 2020.
    Continued growth of Apple's Other Products category, including the Apple Watch, Apple TV, HomePod, AirPods, Beats, iPod touch, and accessories, as Apple diversifies revenue beyond the iPhone.

    Apple's CEO Tim Cook and CFO Luca Maestri will discuss the company's earnings results on a conference call at 2:00 p.m. Pacific Time today. MacRumors will loosely transcribe the one-hour call as it occurs live.

    Article Link: Apple Expected to Report Its Best Fourth Quarter Ever Today Following iPhone XS and iPhone XS Max Launch
     
  2. KPandian1, Nov 1, 2018
    Last edited: Nov 1, 2018

    KPandian1 macrumors 65816

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    #2
    Wow!

    Considering the discontent with most Apple products, exception being iPhones, this is remarkable if true! Especially that Mac line!

    (Edit)
     
  3. JCCL macrumors 6502a

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    #3
    Well I think the discontent is pretty much with the Mac Line. I think most people agree that despite the notch, the iPhone X, XS, XS Max and XR are great phones, and also I am seeing great reception towards the new iPads and Watches. So the devices themselves are great. Biggest criticisms are the Mac line and specially the prices for the flagship models, which just a couple of years ago used to be much lower, and is reflected by the highest selling prices. But the devices themselves are being greatly acclaimed I think.
     
  4. RodThePlod macrumors 6502a

    RodThePlod

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    #4
    Hopefully Tim gives us a quick update on where they are with reposting watchOS 5.1.
     
  5. mattburley7 macrumors 68040

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    #5
    I wouldnt count on it :mad: they probably still working on the fix unfortunately.
     
  6. now i see it macrumors 68030

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    #6
    ...because 250,000,000 Mac Mini fans just upgraded
     
  7. Mike MA macrumors 68000

    Mike MA

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    #7
    For me this will also be a record breaking fourth quarter, in terms of expenses...
     
  8. ryanwarsaw macrumors 68020

    ryanwarsaw

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    #8
    This is more exciting than the product announcements.
     
  9. AngerDanger macrumors 68040

    AngerDanger

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    @Joe Rossignol, if ever there were a time to use it… :p

    Tim Cook in Front of Balloons.jpg
     
  10. Joe Rossignol Editor

    Joe Rossignol

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    #10
  11. cristianvaldez macrumors newbie

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    #11
    Considering the price hikes, I’m not surprised...
     
  12. SamGabbay macrumors 6502a

    SamGabbay

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  13. StellarVixen macrumors 65816

    StellarVixen

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    #13
    Make it rain! We are here to make it sure it does so.

    *sigh*
     
  14. ryanwarsaw macrumors 68020

    ryanwarsaw

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    #14
    Wow they beat expectations and the stock went down from $223 to $212 in minutes.... Timeto buy some more.
     
  15. DocMultimedia macrumors 6502

    DocMultimedia

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    #15
    Yeah, 4.x% in a matter of moments. That's not good. Now 5%.
     
  16. KPOM macrumors G5

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    #16
    Big beat on both EPS and revenue. And of course the shares are down more than 3% because analysts don’t like the Q4 forecast.
     
  17. MN7119 macrumors 6502

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  18. KPOM macrumors G5

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    #18
    Analysts don’t like the forecast for Q4.
     
  19. alent1234 macrumors 603

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  20. SoyCapitanSoyCapitan macrumors 601

    SoyCapitanSoyCapitan

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    #20

    Nice. People sold on the news and took comfortable profits. Next quarter should do really well with the new product line up.
     
  21. DocMultimedia macrumors 6502

    DocMultimedia

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    #21
    At least it has settled in around negative four-ish.
     
  22. FFR macrumors 68040

    FFR

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    #22
    Guess all those posters that claimed iPhone Xs/Xs max were not selling because of adequate inventory during preorders and the weeks that followed were just full of it.
     
  23. SoyCapitanSoyCapitan macrumors 601

    SoyCapitanSoyCapitan

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    #23
    New phones and iPad sales will show in next quarter. It’s going to be an awesome quarter for Apple products with the new line up.
     
  24. PickUrPoison macrumors 68030

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    #24
    Apple doesn’t provide guidance on number of iPhones they will sell.
     
  25. jonblatho macrumors 6502a

    jonblatho

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    #25
    Analysts release their own expectations, and Apple seemingly missed on those expectations.
     

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